The OECD Committee on Fiscal Affairs (CFA) invites public comments on draft changes to the Commentary on Articles 10, 11 and 12 (http://www.oecd.org/dataoecd/49/35/47643872.pdf) of the OECD Model Tax Convention concerning the meaning of the term “beneficial owner”.
The term “beneficial owner”, as used in these Articles of the Model Tax Convention, has given rise to different interpretations by courts and tax administrations. Given the risks of double taxation and non-taxation arising from these different interpretations, the CFA has developed proposals aimed at clarifying the interpretation that should be given to that concept in the context of the Model Tax Convention.
This discussion draft includes the proposed changes to the Commentary on Articles 10, 11 and 12 of the Model Tax Convention.