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By Oliver R. Hoor and Pierre Kreemer*
On 14 March 2014, the OECD released a discussion draft entitled “Preventing the granting of Treaty Benefits in Inappropriate Circumstances” (the “Discussion Draft”) for public consultation. The Discussion Draft includes proposals in relation to BEPS Action 6 (Preventing Treaty Abuse) for counteracting perceived abuse of tax treaties. The OECD received more than 60 public comments in response to the Discussion Draft. This article explains the problem of treaty shopping, provides a critical analysis of the proposals in the Discussion Draft and considers limitations set by EU law.
I. Introduction
Bilateral tax treaties are an important and well established feature of the international tax system....
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