beneficial owner of income

English translation: income due to the beneficial owner

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:beneficial owner of income
Selected answer:income due to the beneficial owner
Entered by: B D Finch

08:20 Jan 11, 2017
English language (monolingual) [PRO]
Law/Patents - Law (general)
English term or phrase: beneficial owner of income
In the context of double taxation treaties (and many others), we can talk of the beneficial owner of a company. The company can generate an income stream this beneficial owner is entitled to. Question: can we say that he is a "beneficial owner" of this income, or would "beneficiary" or "beneficial recipient" sound better? (To my ear, you cannot very much own an income, but I stand corrected)
TIA
danya
Local time: 01:36
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".

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Note added at 6 hrs (2017-01-11 14:58:11 GMT)
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In answer to your note: yes, of course.
Selected response from:

B D Finch
France
Local time: 23:36
Grading comment
thank you!
4 KudoZ points were awarded for this answer



SUMMARY OF ALL EXPLANATIONS PROVIDED
4 +1income due to the beneficial owner
B D Finch
3 +1Beneficial owner
Rachael Ellis (X)


Discussion entries: 1





  

Answers


5 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
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.


Rachael Ellis (X)
Spain
Local time: 23:36
Native speaker of: English
Notes to answerer
Asker: Thank you Rachael, I will check this document out!


Peer comments on this answer (and responses from the answerer)
agree  acetran
1 day 22 hrs
Login to enter a peer comment (or grade)

6 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
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.

B D Finch
France
Local time: 23:36
Works in field
Native speaker of: English
PRO pts in category: 72
Grading comment
thank you!
Notes to answerer
Asker: Thank you for your answer. In the last sentence, do you mean "substitute ... for"?


Peer comments on this answer (and responses from the answerer)
agree  Charlesp
1 day 15 hrs
  -> Thanks Charles
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