Transfer Pricing in Canada, the United States and around the World

Transfer Pricing  in Canada, the United States and around the World

2017 Update of the OECD Model Tax Convention

On July 11, 2017, the OECD issued the Draft content of the 2017 update of the OECD Model Tax Convention.

Comments are requested on specific parts of that draft by August 10, 2017 as indicated by the OECD:

  • Changes to paragraph 13 of the Commentary on Article 4 related to the issue whether a house rented to an unrelated person can be considered to be a “permanent home available to” the landlord for purposes of the tie-breaker rule in Article 4(2) a).
  • Changes to paragraphs 17 and 19 of, and the addition of new paragraph 19.1 to, the Commentary on Article 4. These changes are intended to clarify the meaning of “habitual abode” in the tie-breaker rule in Article 4(2) c).
  • The addition of new paragraph 1.1 to the Commentary on Article 5. That paragraph indicates that registration for the purposes of a value added tax or goods and services tax is, by itself, irrelevant for the purposes of the application and interpretation of the permanent establishment definition.
  • Deletion of the parenthetical reference “(other than a partnership)” from subparagraph 2 a) of Article 10, which is intended to ensure that the reduced rate of source taxation on dividends provided by that subparagraph is applicable in the case where new Article 1(2) would have the effect that a dividend paid to a transparent entity would be considered to be income of a resident of a Contracting State because it is taxed either in the hands of the entity or in the hands of the members of that entity. That deletion is accompanied by new paragraphs 11 and 11.1 of the Commentary on Article 10.”

The Draft content of the 2017 update of the OECD Model Tax Convention has been added to the library on BEPS and Transfer Pricing which is available here.

Robert Robillard, Ph.D., CPA, CGA, Adm.A., MBA, M.Sc. Econ., M.A.P.
Senior Partner, RBRT Fiscalité / Tax (RBRT inc.)
514-742-8086
robertrobillard@rbrt.ca
rbrt.ca

The information in this blog post is general information only. Data and information come from sources believed to be reliable but accuracy cannot be guaranteed. RBRT Inc., RBRT Concepts Inc. or the author are not responsible or liable for any error, omission or inaccuracy in such information. RBRT Inc., RBRT Concepts Inc. or the author are not responsible or liable with respect to the content appearing on external sources nor regarding the language of this content. The opinions expressed in this blogpost are those of the author. Readers should seek advice from RBRT Inc. as required.

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À propos de 
Robert Robillard, Ph.D., CPA, CGA, Adm.A., MBA, M.Sc. Econ., M.A.P. is Founder and Senior Partner at RBRT Fiscalité / Tax (RBRT Inc.), an accounting firm which specializes in Canadian and international taxation. Robert is also a lecturer in several tax training seminars at RBRT Concepts inc. Robert is a former Officer of the Canadian Competent Authority and a former Case Manager at the Canada Revenue Agency. Robert bas been involved in taxation for over 14 years. Robert can be reached by email at robertrobillard@rbrt.ca or by phone at 514-742-8086.