A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree of Master of Commerce (Taxation). Johannesburg, 2015 / Tax treaties have a developed language of their own within the field of international law. They may include terms that are unknown in particular jurisdictions of domestic law or therein defined differently. Because the language of tax treaties and domestic law differ from each other, the definitions of certain terms and income type under a tax treaty and under different states’ domestic law are not necessary identical. Despite these differences, tax treaty definitions must be used for tax treaty classification purposes, and domestic law definitions must be used for domestic law classification purposes. The tax definition determines the type of the income for tax treaty purposes even though the income would qualify under another income category under the treaty states’ domestic law. Similarly, the domestic tax law definition determines the type of income for domestic law purposes (Helminen 2010). In most instances the treaty definitions of the various types of income refer back to domestic tax law, and where the domestic tax law definition deviates between the two treaty countries, this may lead to the application by these countries of different articles of the treaty. If this is caused by the application of the domestic law, this is referred to as a conflict of qualification in the Commentaries to the OECD Model Tax Convention. In general a conflict of qualification refers to a situation where identical facts are treated differently for tax purposes in different countries. Such a conflict may either concern the subject or the object of taxation. Key words: Tax treaties, OECD MTC, Double Tax Agreements, double taxation, conflicts of qualification, hybrid entities, partnerships, fiscally transparent, domestic law, Mutual Agreement Procedures, permanent establishment.

Submitted by Rosina Valeria Lanzellotti Mattiussi Teixeira (rosina.teixeira@unisantos.br) on 2015-05-18T19:06:42Z No. of bitstreams: 1 Maria de Fatima Rodrigues Marques.pdf: 807222 bytes, checksum: da828be74da50f13f6b1e38c6bb6bce1 (MD5) / Made available in DSpace on 2015-05-18T19:06:42Z (GMT). No. of bitstreams: 1 Maria de Fatima Rodrigues Marques.pdf: 807222 bytes, checksum: da828be74da50f13f6b1e38c6bb6bce1 (MD5) Previous issue date: 2013-10-23 / The present work aims to analyze the phenomenon of double taxation with respect specifically to tax the income of individuals. In the Introduction, it is some considerations about the changes occurred in trade relations between the countries from the last century. In Chapter I, we analyze the International Tax Law, as an expression of state sovereignty itself. And the principles of territoriality and universality. In Chapter II, considerations concerning the obligation of international law and, therefore, treaties which are their sources are made. Are studied treaties, notably those involving tax in Chapter III. Have called for the application of the double taxation agreements with the Vienna Convention on the Law of Treaties and the hierarchical relationship of treaties in Brazil. In Chapter IV, it is an analysis of double taxation. Fiscal neutrality and unilateral measures to neutralize the double taxation. In Chapter V, is considered the tax treatment of the income of individuals in Brazil, in the context of international law in the two situations: the existence or not of an agreement on double taxation . These two situations are addressed individually in the following Chapters VI and VII. In Chapter VIII, brings up the issue of tax avoidance. In Chapter IX, it is the relationship between the double taxation agreements and human dignity. In Chapter X, presents a conclusive overview on the topic. / O presente trabalho pretende fazer uma análise do fenômeno da dupla tributação internacional com relação especificamente ao imposto sobre a renda da pessoa física. Na Introdução, faz-se algumas considerações a respeito das mudanças havidas nas relações comerciais entre os países a partir do século passado. No Capítulo I, é analisado o Direito Tributário Internacional, como expressão da própria soberania do Estado. E, os princípios da territorialidade e da universalidade. No Capítulo II, são feitas considerações acerca da obrigatoriedade do direito internacional e, por conseguinte, dos tratados que são suas fontes. No Capítulo III, são estudados os tratados, notadamente os de natureza tributária. Propugna-se pela aplicação nos acordos de bitributação da Convenção de Viena sobre o direito dos tratados e a relação hierárquica dos tratados no Brasil. No Capítulo IV, faz-se uma análise sobre a dupla tributação. A neutralidade fiscal e as medidas unilaterais para neutralizar a dupla tributação. No Capítulos V, é analisado o tratamento fiscal dos rendimentos das pessoas físicas no Brasil, no contexto do direito internacional nas duas situações: existência, ou não, de um acordo contra a dupla tributação. Essas duas situações são isoladamente enfrentadas nos Capítulos seguintes: VI e VII. No Capítulo VIII, traz-se a problemática da elisão fiscal. No Capítulo IX, faz-se a relação entre os acordos de bitributação e a dignidade da pessoa humana. No Capítulo X, apresenta-se uma síntese conclusiva sobre o tema.

M.Com. (SA and International Tax) / The term “beneficial owner” is found in 64 of the 71 double tax agreements signed by South Africa. However, there is no definition of the term in the Income Tax Act or within the orbit of international taxation. There are international court cases in relation to the interpretation of the term. The fact that there are inconsistencies in the treaties signed by South Africa may result in treaty shopping opportunities. The study aims to define the term “beneficial owner”; to view other necessary acts and other forms of supporting legislature when interpreting a treaty; and subsequently, to explore the term as used in South African double tax agreements.

Thesis (M.Com. (Taxation))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Accountancy, 2014. / With the international platform for cross border investment and economic development growing year on year at a steady pace, it has become apparent that bilateral income tax treaties do not always operate effectively in multilateral tax situations. Global transactions involving more than two states are certainly not uncommon and it could be said that the most fundamental issue in international taxation is double taxation resulting from the taxing rights of different tax jurisdictions that ‘overlap’ with regard to, generally speaking, one taxpayer or one declared income stream. Multilateral tax situations, commonly known as triangular cases, occur where tax incidence on a particular stream of income is triggered in three countries. These situations typically arise where a person who is a tax resident in two respective countries for tax purposes (a dual resident), or a person who is a tax resident in one country and has a permanent establishment in another, is earning revenue of which the source is in a third country. Taxing rights and jurisdictions of the three countries involved could potentially be in conflict with each other and therefore such situations may bring about lawful international triangular taxation or double taxation which will inevitably discourage enterprises from continuing investment and development internationally. Broad multilateral treaties in the income tax arena are not common1, and most treaties are still of a bilateral nature, i.e. generally addressing tax scenarios where only two specific countries are involved. The Organisation for Economic Cooperation and Development’s (’the OECD’)Model Tax Convention states this: There are no reasons to believe that the conclusion of a multilateral tax convention involving all Member countries could now be considered practicable. The Committee therefore considers that bilateral conventions are still a more appropriate way to ensure the elimination of double taxation at the international level.2

No description available.

Begreppet beneficial owner finns i artiklarna 10, 11 och 12 i OECD:s modellavtal och är viktigt då det krävs att en part utgör beneficial owner för att denne ska ha rätt till den skattelättnad som erbjuds i de relevanta artiklarna. Då begreppet är oklart har OECD gett ut förslag på nya kommentarer till det i avsikt att klargöra dess innebörd. Uppsatsens syfte är att utreda innebörden av beneficial owner i artiklarna 10, 11 och 12 i OECD:s modellavtal från ett tolknings och tillämpnings perspektiv. Av utredningen framkom att begreppet enbart bör tolkas enligt modellavtalet och att det ska tillämpas i situationer, i vilket en mottagare av en inkomst har en skyldighet relaterad till att vidarebefordra inkomsten till en annan part och därför agerar som en mellanhandel. Om en part har en sådan skyldighet kan denne inte utgöra beneficial owner. I nuläget är dock termen relaterad oklar och författaren anser att den bör klargöras av OECD snarast. Vid utredningen om en part utgör beneficial owner bör först ett legalt tillvägagångsätt användas för att undersöka om det finns en skyldighet relaterad till att vidarebefordra inkomsten i partens legala dokument. Om detta inte hittas bör därefter både ett legalt och faktabaserat tillvägagångsätt användas, vid utredningen av fakta och omständigheter för att se om det finns substans som visar på att parten i praktiken är bunden (som om att parten hade en kontraktuell eller legal skyldighet) att vidarebefordra inkomsten.   Författarens slutsats blev att en part för att utgöra beneficial owner måste vara den som har rätten att använda den mottagna inkomsten efter vilja och även vara den som faktiskt åtnjuter de ekonomiska fördelarna av denna. Vidare måste parten också behandlas som ägaren till inkomsten i skattehänseende i hemviststaten, då en skattelättnad inte bör ges om det inte föreligger en risk för dubbelbeskattning. / The term beneficial owner is contained in articles 10, 11 and 12 in the OECD Model Tax Convention and is of importance since it is required that a party is the beneficial owner in order to be entitled to the tax relief offered in the relevant articles. Since the term is unclear, OECD has published proposals for new comments to clarify its meaning. The purpose of this study is to investigate the meaning of the term beneficial owner in articles 10, 11 and 12 in the OECD Model Tax Convention from an interpretation and application perspective. The investigation revealed that the term should only be interpreted in accordance with the OECD Model Tax Convention and that it aims at a recipient who has an obligation related to forwarding an income to another party and who is therefore acting as an intermediary. If a party has such an obligation, then he cannot be the beneficial owner. At present the term related is unclear and the author thinks that it should be clarified by the OECD as soon as possible. When investigating whether a party is the beneficial owner a legal approach should be used first to examine whether there is an obligation related to forwarding the income in the party's legal documents. If this is not found, then both a legal and factual approach should be used when examining the facts and circumstances in order to see if there is substance to show that the party is in practice bound (as if that party had a contractual or legal obligation) to forward the income. The author's conclusion is that a part to be the beneficial owner must be the one who has the right to use the received income as they wish and also be the one who actually enjoys the economic benefits of it. Furthermore, the party must also be treated as the owner of the income for tax purposes in the State of residence, since tax relief should not be given unless there is a risk of double taxation.

Mauritius has, in recent years, become one of the preferred financial centres owing to its business-friendly economy, preferential tax regime, wide tax treaty network and solid infrastructure. The Mauritian economy and people have greatly benefitted from the country’s success as a financial centre. One benefit offered by the Mauritian tax regime is the ability and ease with which a person can gain residency to access the preferential tax rates that the country offers. South Africa has recently re-introduced a headquarter tax regime, which will make it a competitor with Mauritius for channelling international trade and foreign direct investment. Previous research focuses on the elements of international taxation and highlights some of the benefits that a company could enjoy by using Mauritius as an offshore base. One of the key elements of a successful headquarter company regime is that of a wide tax treaty network which offers preferential terms for taxing certain income classes. The aim of this study is to provide a theoretical construct for the comparison of double tax agreements, with the goal of identifying those that provide preferential terms for the taxation of certain income classes and the elimination of double taxation. This study focuses on the double tax agreements between South Africa, Mauritius and China, highlighting some of the deficiencies of the South African agreement with China and comparing those with Mauritius’s agreement with China. These deficiencies and the preferential tax regime that Mauritius offers will inevitably provide multi-national companies with tax saving opportunities if they use Mauritius as an offshore base. This study will point out some of the areas where possible tax saving opportunities could be identified. The study further aims to provide a platform from which the South African headquarter company regime can be assessed and analysed. This is specifically important if South Africa is to compete with Mauritius. AFRIKAANS : Mauritius het in onlangse jare een van die gekose finansiële sentrums geword as gevolg van hul besigheidsvriendelike houding, voordelige belasting regime, hul wye netwerk van dubbelbelastingooreenkomste en gevestigde infrastruktuur. Die ekonomie van Mauritius en Mauritius se bevolking het baie voordeel getrek uit die sukses van Mauritius se finansiële dienste sektor. Een van die voordele wat Mauritius se belasting regime bied is die gemaklikheid waarmee inwonerstatus bekom kan word en ‘n persoon toegang tot Mauritius se voordelige belastingkoerse kan kry. Suid-Afrika het soortgelyks verlede jaar ‘n internasionale hoofkantoor regime bekendgestel wat Suid-Afrika dus ‘n mededinger met Mauritius gaan maak ten opsigte van die kanalisering van internasionale fondse en buitelandse belegging. Vorige navorsing fokus op die beginsels van internasionale belasting en identifiseer voordele wat maatskappye kan geniet indien hulle van Mauritius gebruik maak as hul buitelandse basis. Een van die belagrike elemente van ‘n suksesvolle hoofkantoor maatskappy regime is dat die regime ‘n wye netwerk van dubbelbelastingooreenkomste bied en dat die dubbelbelastingooreenkomste voordelige terme vir die belasting van sekere inkomste klasse bied. Hierdie studie se doelwit is om ‘n teoretiese platform te vestig vir die vergelyking van dubbelbelastingooreenkomste met die oog om dubbelbelastingooreenkomste te identifiseer wat voordelige terme bied vir die belasting van sekere inkomste klasse en die eliminering van dubbele belasting. Hierdie studie fokus op die dubbelbelastingooreenkomste tussen Suid-Afrika, Mauritius en Sjina in ‘n poging om sekere van die tekortkominge van die dubbelbelastingooreenkoms tussen Suid-Afrika en Sjina uit te wys wanneer dit met die dubbelbelastingooreenkoms tussen Mauritius en Sjina vergelyk word. Hierdie tekortkominge en die voordelige belasting regime wat Mauritius bied sal multi-nasionale maatskappye die geleentheid bied om belastingvoordele te ontgin indien hulle van Mauritius gebruik maak as ‘n buitelandse basis. Hierdie studie sal van die areas identifiseer waar ‘n maatskappy moontlik belasting kan bespaar. Die studie poog ook om ‘n platform te bewerkstellig vir die analise en evalueering van die Suid-Afrikaanse hoofkantoor regime. Hierdie analise en evalueering is spesifiek belangrik indien Suid-Afrika met Mauritius wil meeding. Copyright 2011, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. Please cite as follows: Van den Berg, A 2011,A comparative study of double tax agreements between South Africa, Mauritius and China, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03222012-172313 / > F12/4/180/gm / Dissertation (MCom)--University of Pretoria, 2011. / Taxation / unrestricted

Dans le cadre de l’internationalisation puis de la mondialisation de la sphère économique et financière, les paradis fiscaux se sont développés tout au long du XXe siècle. Emergent à l’abri de la cage de l’Etat-Nation, ce phénomène de déconnexion de la sphère résidente de la sphère d’activité économique effective, a donné lieu à l’émergence de centres offshore, de manière embryonnaire durant la première moitié du XXe siècle, puis à une échelle industrielle sur l’ensemble des secteurs de l’activité économique à partir des années 1950. Les observateurs et les acteurs politiques des pays industrialisés se sont progressivement saisi du sujet dans le cadre de l’appréhension des effets dommageables de la concurrence fiscale internationale. Les difficultés rencontrées dans la lutte engagée à différentes échelles contre ces territoires traduisent l’ambiguïté des relations qu’entretiennent les grands pays industrialisés avec la sphère offshore. / In the framework of the growth and the internationalisation of the financial flows since the beginning of the twentieth century, Tax havens leading positions in the economic and financial environment have become so much important, that many political actors of the well developed countries have tried to assess this phenomenon through the international tax competition studies. Going further in the tax optimisation and tax planning process of the offshore sphere of activity, we can consider that far from being isolated in the sovereignty of a few countries, the offshore financial model is far integrated in the worldwide economic system, which can explain the difficulty and the different means used by the political authority to manage and stop the offshore mechanism through a by territory approach.

This dissertation interrogates which principles should govern the interpretation of South African Double Tax Agreements (‘DTAs’). This field of study is complex because any DTAs have a dual nature. In the first place, it is an international agreement where two states are parties (a bilateral agreement); second, it also becomes part of domestic law. DTAs are governed by principles of customary international law some of which have been codified in the Vienna Convention on the Law of Treaties (‘VCLT’). Though South Africa is not a party to the VCLT, nevertheless, there is judicial support in South Africa for the notion that VCLT reflects general principles of international law [Harksen v President of the Republic of South Africa 1998 (2) SA 1011 (C)]. DTAs are incorporated into South African domestic law by way of statutory enactment in accordance with the dualist approach to international law. The first purpose of the dissertation is to systematise and analyse the structure of an OECD Model Tax Convention (‘OEC D MTC’) and the international methods (principles) of interpretation of DTAs in order to gain a better understanding of how this international methods functions. A number of issues relating to the interpretation of these methods are analysed. Since DTAs are applied by tax authorities, courts and taxpayers in a domestic law context, i.e. within the framework of the legal system of a particular state, the analysis focuses on the application in South Africa of the methods of the interpretation of South African DTAs. The second objective of the dissertation refers to international tax law principles (treaties and customary international law) derived from South Africa public international law and to evaluate a few selected issues related to South African DTAs and their relevance to South Africa domestic tax laws; the interpretation of DTAs and the implications of a DTA overriding or in conflict with South Africa domestic tax laws. It will also interrogate the legal status of a DTA under South African tax law and whether the anti-discrimination article in South Africa DTAs have the force of law in South Africa? / Dissertation (LLM)--University of Pretoria, 2014. / gm2014 / Mercantile Law / unrestricted

Au siècle dernier, la Turquie moderne a adopté les principes de démocratie et de laïcité. Parvenue à la stabilité politique, elle connaît aujourd’hui une croissance économique stable et pérenne qui lui permet de jouer sa partition au niveau international. La Turquie est passée du modernisme inhérent à l’idéologie ataturkienne à un modernisme qui s’inspire aujourd’hui des principes occidentaux en les adaptant à sa conjoncture économique et à ses valeurs sociales. En matière d’imposition des bénéfices des entreprises, la législation fiscale joue un rôle essentiel. L’accroissement des échanges économiques de la Turquie avec les pays étrangers, notamment ceux de l’Union européenne, amène le législateur fiscal turc à donner une dimension internationale à la fiscalité d’entreprise. Il témoigne de sa volonté de modernisme et de ses préoccupations internationales en accordant, depuis le début des années 2000, une importance toute particulière aux exigences de l’OCDE et de l’Union européenne. Il s’applique à faire de la fiscalité d’entreprise une fiscalité compétitive au service du développement économique et à garantir les droits des entreprises afin qu’elles bénéficient d’une sécurité juridique réelle. Par voie de conséquence, la perception du contribuable turc à l’égard de l’État évolue, passant d’une conception ad nominam – qui accorde la primauté à ceux qui dirigent le pays – à une conception ad valorem – qui accorde la primauté à la valeur des dispositions fiscales. / Last century, Turkey adopted the principles of democracy and secularism. It has reached political stability and is now experiencing a stable and durable economic growth that enables it to play a role on an international scale. Turkey has gone from a modernism inherent to the Ataturk ideology to a modernism inspired by Western principles, adapting them to its economic situation and its social values. As regards taxation on firm profits, fiscal legislation plays an essential part. The increase of economic exchanges between Turkey and foreign countries, especially those belonging to the European Union, leads Turkish fiscal laws to give an international standing to the firm tax system. It has shown its will of modernism and its international preoccupations by attaching a specific importance to the requirements of the OECD and the European Union since the beginning of the 2000s. It makes every effort to turn firm taxation into a competitive tax system serving the economic development and to guarantee the rights of the firms so that they have a real juridical security. As a result, the collection of Turkish taxpayers to the state is evolving, going from a conception ad nominam – prioritizing the leaders of the country – to a conception ad valorem – prioritizing the value of fiscal measures.