Both the limitation-on-benefits clause and the principal purpose test proposed by the OECD in its current BEPS initiative aim at countering treaty shopping. A closer look reveals that these rules could have considerable effect on the tax treaty entitlement of investment funds. In this article the authors shed light on the provisions proposed so far, their interplay with the proposed article 1(2) of the OECD Model and their effects on the treatment of investment funds under international tax law.