Capital Gains: The History of the Principle of Symmetry, the Internal Order of Article 13 and the Dynamic Interpretation of the Changes in the 2010 Commentary on “Forming Part” and “Effectively Connected”
- H. Pijl
- World Tax Journal, 2013 (Volume 5), No 1
- 18 February 2013
This contribution discusses the symmetry in the attribution of taxing rights of income and capital gains/capital in a historic context. It describes the unsolved hierarchy problems that were introduced with the introduction of article 13(4) in 2003. Article 13(4) has also disturbed the previously balanced coordination of articles 7 and 13 in paragraph 4 of the Commentary on Article 13. The contribution criticizes the late (2010) introduction of the new Commentaries explaining “effectively connected with” and “forming part of the business property of” a PE.