Undefined Terms Under A Double Tax Agreement

2. In the absence of this, subject to the treaty framework and in accordance with the interpretation of the treaty in good faith, the importance that has been taken under the law of the state applying the tax treaty. The context is filming and increasing the destination and needs to be examined in depth. One of the essential elements of the use of Article 3, paragraph 2, is to refer to national law in order to use a specific purpose to assign meaning to a term. The term “term” is generally understood as a word or phrase used to describe a thing or express a concept, especially in a certain type of language or a particular branch of the study. Article 3, paragraph 2, only comes into play for undefined contractual terms, which are inherent in the nature of the reference points and which have a particular meaning as a “term” used in the tax treaty. The national law under Article 3, paragraph 2, is only relevant if the very concept of contract is not defined. Article 31, paragraph 1 of the Vienna Convention stipulates that treaties must be interpreted in good faith in accordance with the ordinary meaning of the terms in their “context” and according to the purpose and purpose of the treaty. The ordinary meaning of a term is the meaning that naturally arises from a reading of the text, taking into account its purpose and purpose and taking into account the common intention of the parties. This refers to how a particular term would be understood in that particular context. Article 31, paragraph 2 of the Vienna Convention notes that among the elements that constitute the “context” within the meaning of Article 31 are the text, the preamble to the tax treaty and annexes, as well as any agreement on the tax treaty between the contracting parties in connection with the conclusion of the tax treaty and any legal act adopted by one or more parties and accepted by instruments other than those related to the agreement. Article 3, paragraph 2 of the OECD Model Convention provides that, for the purposes of the convention, any concept that is not defined in it has the meaning it has at that time under that state`s law, unless the context requires otherwise. Article 3, paragraph 2, of the tax treaty therefore constitutes a bridge to national legislation, but with reference to the context.

In conclusion, readers should bear in mind that, given that the OECD regularly updates or otherwise updates the model language, and that opportunities for internal interpretation are always the safest starting point for treaty interpretation, given the continued and widespread implementation of the MLI.

Comments are closed.