“Circularly Linked” Rules Countering Deduction and Non-Inclusion Schemes: Some Thoughts on a Tie-Breaker Test

Countries have rules to address the deduction of payments that are excluded from a recipient’s taxable income and the non-inclusion of income deductible by a payer. If two countries have such rules and both consider the treatment in the other, the rules are “circularly linked”. Could a tie-breaker test resolve this?