Cahiers de Droit Fiscal International - Volume LXXXIIIb 1998 - Practical Issues in the Appplication of Double Tax Conventions

Double tax conventions (DTCs) are growing in both number and complexity. As a result, the practical aspects of applying DTCs have increased in importance for tax authorities and taxpayers, and measures to ensure better operation of DTCs at a national level have a particular urgency. Results have included new rules for handling double tax claims, state transfers form exemption-bases approaches to credit-based approaches to international tax issues, and the need for clarification of internal provisions and procedures in states transferring to a self-assessed tax. Despite the growing import of these issues, however, the application of tax conventions has received little attention in literature and debate. This is unique in both coverage and scientific approach. Rahter than seeking to bolster pre-determined positions, the authors are genuinly looking for issues of import. The work surveys the issues reported from member states, seeking best practices that range from self-authorised claims or ready advance rulings to complex clearance procedures. It also notes problems, including substantial uncertainties for topics such as residence claims and withholding taxes. Focusing on the operation and use of double tax conventions from the taxpayers vieuwpoint, this CAHIER evaluates the extent to wich DTC application processes affect the realisation of the objectives of the conventions. The topicality of the issu and the CAHIER's unique approach make this an important work for tax practioners, policymakers, and others interesed in or affected by the way taxes are paid.