GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
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08:20 Jan 11, 2017 |
English language (monolingual) [PRO] Law/Patents - Law (general) | |||||||
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| Selected response from: B D Finch France Local time: 23:36 | ||||||
Grading comment
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SUMMARY OF ALL EXPLANATIONS PROVIDED | ||||
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4 +1 | income due to the beneficial owner |
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3 +1 | Beneficial owner |
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Discussion entries: 1 | |
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Beneficial owner Explanation: I am not an expert in this field, but there is some useful information in the following document: http://www.oecd.org/tax/treaties/47643872.pdf It explains how the term "beneficial owner" was created to clarify the meaning of the words “paid ... to a resident” but it depends on the country. Since the term “beneficial owner” was added to address potential difficulties arising from the use of the words “paid to …a resident” in paragraph 1, it was intended to be interpreted in this context and not to refer to any technical meaning that it could have had under the domestic law of a specific country (in fact, when it was added to the paragraph, the term did not have a precise meaning in the law of many countries). The term “beneficial owner” is therefore not used in a narrow technical sense (such as the meaning that it has under the trust law of many common law countries), rather, it should be understood in its context, in particular in relation to the words “paid … to a resident”, and in light of the object and purposes of the Convention, including avoiding double taxation and the prevention of fiscal evasion and avoidance. This does not mean, however, that the domestic law meaning of “beneficial owner” is automatically irrelevant for the interpretation of that term in the context of the Article: that domestic law meaning is applicable to the extent that it is consistent with the general guidance included in this Commentary. |
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income due to the beneficial owner Explanation: The person in question is the beneficial owner of the company, not of the income. However that beneficial ownership entitles them to the income. I think it would be wrong to substitute the term "beneficiary". -------------------------------------------------- Note added at 6 hrs (2017-01-11 14:58:11 GMT) -------------------------------------------------- In answer to your note: yes, of course. |
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