Eligibility for Mutual Agreement Procedure under Tax Treaties Following Application of the Principal Purpose Test

Journal
Markey, B.; Gisquiere, T.
International; OECD
Bulletin for International Taxation 2022 (Volume 76), No. 12
FormatPDF
EUR
40
| USD
45
(VAT excl.)

The principal purpose test (PPT) can result in the denial of treaty benefits to taxpayers. This article sets out why the application of the PPT should not prevent eligible taxpayers from initiating a request for a mutual agreement procedure (MAP) to resolve taxation or interpretation issues relating to the PPT.