Stand-by fee taxable in residence state under Art. 15 of the OECD Model

This article considers the decision of the Netherlands Supreme Court of 22 December 2006. The Netherlands Supreme Court held that the employee's residence state has the exclusive authority to tax a stand-by fee under art. 15 of the Netherlands tax treaties that are based on the OECD Model Convention, provided that the employee is physically present in that state whilst he is on stand-by.