The application of Article 3(2) in case of differences between domestic definitions of associated enterprises : a problem of treaty interpretation and a proposed solution

In this article an intricate tax interpretation issue is discussed regarding the application of Article 9 of the OECD Model. Due to a lack of a tax treaty definition of associated enterprises, differences in domestic definitions may lead to non-application of Article 9 in either or both of the countries which concluded the tax treaty. The author explores solutions for this problem on the basis of the tax literature on the functioning of Article 3, Paragraph 2 of the OECD Model.