Javascript must be enabled to continue!
Reservations and declarations to tax treaties
View through CrossRef
The subject of the article.The article represents a research of conceptual properties and issues of applying reservations and declarations to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, developed in frames of implementing the OECD/G20 Action Plan on Base Erosion and Profit Shifting (BEPS). The Multilateral Tax Convention modifies the application of agreements for avoiding double taxation, that are covered by its action. Since January 1, 2021 it has been applied to 34 agreements for avoiding double taxation between the Russian Federation and such countries as the UK, Canada, Latvia, Malta, the Netherlands and France. The Multilateral Tax Convention provides for updating bilateral tax treaties – whether they were developed upon the OECD Model Tax Convention or the UN Model Tax convention. The Convention retains a great degree of flexibility in relation to the implementation of its provisions – especially by the means of reservations, made by the countries.The purpose of the articleis to identify the main characteristics of applying reservations and declarations in international tax law.The methodology.The study is based on empirical methods of comparison and description, theoretical methods of formal and dialectical logic.The main results.Reservations have played a minor role in international taxation until now – usually they reflected disagreement, expressed by an OECD member country with the provisions of the OECD Model Tax Convention or its Official commentary. Reservations were formulated in relation to a non-binding (model) document and their importance was limited. Such reservations cannot be associated with declarations, made in relation to legally binding documents like the Multilateral Tax Convention. Analyzing the general points of scientific dispute upon the mentioned range of issues, the author argues with researchers who deem that the structure of reservations to the Multilateral Tax Convention doesn’t correspond with the provisions over reservations in the Vienna Convention on the Law of Treaties, 1969 and thus recognize those reservations as “legal hybrids”.Conclusions.The structure of reservations to the International Tax Convention is deter-mined by the nature of double taxation agreements. The model lawmaking principle (the use of the OECD Model Tax Convention) allowed developing “umbrella” architecture of relationships between the provisions of the Multilateral Tax Convention and the norms of double taxation agreements. The article categorizes types of reservations as reservations of general nature and treaty-specific reservations. The article also considers the specific properties of reservations made in relation to the provisions of the Convention, which com-pose a minimal standard.
Title: Reservations and declarations to tax treaties
Description:
The subject of the article.
The article represents a research of conceptual properties and issues of applying reservations and declarations to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, developed in frames of implementing the OECD/G20 Action Plan on Base Erosion and Profit Shifting (BEPS).
The Multilateral Tax Convention modifies the application of agreements for avoiding double taxation, that are covered by its action.
Since January 1, 2021 it has been applied to 34 agreements for avoiding double taxation between the Russian Federation and such countries as the UK, Canada, Latvia, Malta, the Netherlands and France.
The Multilateral Tax Convention provides for updating bilateral tax treaties – whether they were developed upon the OECD Model Tax Convention or the UN Model Tax convention.
The Convention retains a great degree of flexibility in relation to the implementation of its provisions – especially by the means of reservations, made by the countries.
The purpose of the articleis to identify the main characteristics of applying reservations and declarations in international tax law.
The methodology.
The study is based on empirical methods of comparison and description, theoretical methods of formal and dialectical logic.
The main results.
Reservations have played a minor role in international taxation until now – usually they reflected disagreement, expressed by an OECD member country with the provisions of the OECD Model Tax Convention or its Official commentary.
Reservations were formulated in relation to a non-binding (model) document and their importance was limited.
Such reservations cannot be associated with declarations, made in relation to legally binding documents like the Multilateral Tax Convention.
Analyzing the general points of scientific dispute upon the mentioned range of issues, the author argues with researchers who deem that the structure of reservations to the Multilateral Tax Convention doesn’t correspond with the provisions over reservations in the Vienna Convention on the Law of Treaties, 1969 and thus recognize those reservations as “legal hybrids”.
Conclusions.
The structure of reservations to the International Tax Convention is deter-mined by the nature of double taxation agreements.
The model lawmaking principle (the use of the OECD Model Tax Convention) allowed developing “umbrella” architecture of relationships between the provisions of the Multilateral Tax Convention and the norms of double taxation agreements.
The article categorizes types of reservations as reservations of general nature and treaty-specific reservations.
The article also considers the specific properties of reservations made in relation to the provisions of the Convention, which com-pose a minimal standard.
Related Results
Simplified Budget Preparation
Simplified Budget Preparation
In the present economic system the budget preparation is massive, multi staged, time consuming and laborious process. There are thousands of different high or very low valued goods...
THE ROLE OF TAX KNOWLEDGE AS A MODERATION IN THE RELATIONSHIP OF TAX SANCTIONS, TAX AUDIT, AND TAX AMNESTY TOWARDS CORPORATE TAX COMPLIANCE
THE ROLE OF TAX KNOWLEDGE AS A MODERATION IN THE RELATIONSHIP OF TAX SANCTIONS, TAX AUDIT, AND TAX AMNESTY TOWARDS CORPORATE TAX COMPLIANCE
Tax is a source of state revenue that plays an important role in the development and improvement of a country's economy. According to Law Number 16 of 2009 concerning the fourth am...
The impact of attitude towards an e-tax system on tax compliance of Vietnamese enterprises: Adoption of an e-tax system as a mediator
The impact of attitude towards an e-tax system on tax compliance of Vietnamese enterprises: Adoption of an e-tax system as a mediator
PURPOSE: Tax compliance is a topic of concern for many scholars all over the world. Most of them point out factors affecting tax compliance, and one significant factor is the adopt...
TAX PLANNING IN THE ENTERPRISE MANAGEMENT SYSTEM
TAX PLANNING IN THE ENTERPRISE MANAGEMENT SYSTEM
The differences between the concepts of “tax planning”, “tax minimization” and “tax optimization” are investigated and it is established that tax minimization is the maximum reduct...
Understanding the Impact of OECD BEPS Actions on Double Tax Treaties
Understanding the Impact of OECD BEPS Actions on Double Tax Treaties
The Organisation for Economic Co-operation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) project represents a significant stride in international taxation, addre...
Tax-legal dimension of the EU founding treaties
Tax-legal dimension of the EU founding treaties
In this article, the author examines the legal nature and content of the EU founding treaties in the part of their impact on the regulation of tax relations. Having the nature of i...
The Influence of Tax Knowledge, Tax Service Quality, Tax Audit, and Use of Tax Sanctions on Tax Evasion: The Case Study of KPP Pratama Seberang Ulu 1 Palembang
The Influence of Tax Knowledge, Tax Service Quality, Tax Audit, and Use of Tax Sanctions on Tax Evasion: The Case Study of KPP Pratama Seberang Ulu 1 Palembang
Tax evasion and tax avoidance and is part of tax planning which aims to reduce the amount of tax payments. As an illegal act, it is clear that tax evasion violates the law so that...
<b>Factors that Influence the Taxpayers’ Perception of the Tax Evasion: Evidence from Pakistan</b>
<b>Factors that Influence the Taxpayers’ Perception of the Tax Evasion: Evidence from Pakistan</b>
The research study's aim is to investigate and identify factors influencing tax evasion (Tax system, Tax knowledge, Tax fairness, Tax Morale, and Tax compliance cost). It also exp...

