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These secondary adjustments, which would be required to establish the situation exactly as it would have been if transactions had been at arm’s length, depend on the facts of the individual case. In pursuing this information from the Swiss, the United States faced legal challenges discussed in detail in Chapter  5. Its conclusions are set out in the report entitled Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations,’ which is periodically updated to reflect the progress of the work of the Committee in this area. This shorter version contains the articles and commentaries of the Model Tax Convention on Income and Capital as it read on 21 November 2017, but without the historical notes and the background reports that are included in the full version. However, in some cases the application of the national law of some countries may result in adjustments to profits at variance with the principles of the Article. %PDF-1.6 %���� Where they are made in good faith, such adjustments may facilitate the reporting of taxable income by taxpayers in accordance with the arm’s length principle. This publication is the tenth edition of the condensed version of the OECD Model Tax Convention on Income and on Capital. h�bbd``b`fsA��`��� Ӂ�2����3012>�c`$@�gh� ` C�� DOI: https://dx.doi.org/10.1787/mtc_cond-2017-10-en 6. Not logged in One of the themes of this research is that these policy challenges continue to be ignored by the OECD and, more recently, by the Global Forum on Transparency and Exchange of Information for Tax Purposes and the G20 in favour of solutions that seek tax harmonization in the form of treaties and model agreements. The Czech Republic reserves the right not to insert paragraph 2 in its conventions but is prepared in the course of negotiations to accept this paragraph and at the same time to add a third paragraph limiting the potential corresponding adjustment to bona-fide cases. The 2017 edition of the OECD Model mainly reflects a consolidation of the treaty-related measures resulting from the work on the OECD/G20 BEPS Project under Action 2 (Neutralising the Effects of Hybrid Mismatch Arrangements), Action 6 (Preventing the Granting of Treaty Benefits in Inappropriate Circumstances), Action 7 (Preventing the Artificial Avoidance of Permanent Establishment Status) and Action 14 (Making Dispute Resolution More Effective). These keywords were added by machine and not by the authors. This chapter refers to an important battle between the United States and Switzerland over the use of the EOI Article in the Convention between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation with respect to Taxes on Income to obtain information on US tax cheats with undeclared bank accounts at UBS. Cite as. This publication is the condensed version of the OECD Model Tax Convention on Income and Capital.. 1Iv�#�$��y������~��,���|/�յ�\]_0ɋ>3���e�L����+~�h>�4���Zw~��o'Uc�"��r���gsÒ$ƌIu�j�(g-��G���ǻ�d�c��ܓvT.�ů7�zY����nV˲yK��r Y�$�..Ƥ*̦2���E�]2J~n�E=�7�E�/L���2�����^�Ն�5(�Q���hr�޳f���͌��M�ik�=�7��� \��� ��Kki͋�oSC('����y{��`�K�pd�3c����7�d��H�(o�g�n}�#�%{��H���di�d�D�K�X �(�,����H�}�G�����(��q��$���;�����n��@�.��M(?�cL�!�V���|�:;)�w����у*�[oW eo#�#*rl%:bk�Iuw�Qp�N˂�KO�8��2 �m��[�c���>�ޒ H�b``������$����WR����~�������|@���T��#���2S/`M. OECD Model Tax Convention 2017; UN Manual on Transfer Pricing 2017; UN Model Tax Convention 2011; ... control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, ... depending upon the type of income concerned and the provisions of the Article dealing with such income. Transfer Pricing in a Multinational Enterprice, C.1. Kerzner, David S, Vitaly Timokhov, & David W Chodikoff, eds. Approval was partially successful, following selected items could not be processed due to error, http://instance.metastore.ingenta.com/content/periodical/20745419, South Georgia and the South Sandwich Islands, Model Tax Convention on Income and on Capital: Condensed Version, Model Tax Convention on Income and on Capital (Full Version), Model Double Taxation Convention on Income and Capital 1977, Draft Double Taxation Convention on Income and Capital 1963. 217.61.128.190. The challenges faced by the United States in obtaining taxpayer information on undeclared American account holders evidence important international tax policy issues regarding the efficacy of EOI as a stand-alone tool to combat tax evasion. Contracting States are enabled by the Article to deal with such situations by means of corresponding adjustments (see below) and under mutual agreement procedures. (*���(%�8H����8c�-�� f�ԉd�9�@6_IjH��9���(3=�D����R�1%? This is a preview of subscription content. It is not the purpose of the paragraph to deal with what might be called “secondary adjustments“. Not affiliated is the online library of the Organisation for Economic Cooperation and Development (OECD) featuring its books, papers and statistics and is the knowledge base of OECD's analysis and data. These multiple challenges underscore a key policy problem in dealing with tax havens to combat tax evasion.

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This paragraph provides that the taxation authorities of a Contracting State may, for the purpose of calculating tax liabilities of associated enterprises, re-write the accounts of the enterprises if, as a result of the special relations between the enterprises, the accounts do not show the true taxable profits arising in that State. As mentioned in General remarks to the Commentary to Article 24 of the OECD Model Tax Convention on Income and on Capital (2017) (the OECD MTC): This Article deals with the elimination of tax discrimination in certain precise circumstances.