The limitation on benefits provision in BEPS Action 6/Multilateral Instrument: Ineffective overreaction of mind-numbing complexity: Part 2

• Main Author: KUZNIACKI, Blazej
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Accounting; Taxation
• Online Access: https://ink.library.smu.edu.sg/soa_research/1771
• Institution: Singapore Management University

This is the second part of a comprehensive two-part article addressing the usefulness of the limitation on benefits (LOB) provision in base erosion and profit shifting (BEPS) Action 6 and the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) in prevention of abusive treaty shopping-the most prevalent and typical form of treaty abuse. The study concludes that the MLI LOB rule is an ineffective overreaction of 'mind-numbing complexity' which, despite its great potential to reflect the nature of tax treaties and treaty shopping, seems to be a lost opportunity to address that most prevalent form of treaty abuse in a targeted, effective manner. After a critical analysis, de lege ferenda conclusions will follow.