Author Description

The method article of any tax treaty plays an essential role in avoiding juridical double taxation. It determines the extent to which the residence state refrains from taxing an item of income if both contracting states may tax according to the distributive rules of the treaty. Calculating the respective relief can be challenging, as the wording of both articles 23A and 23B of the OECD Model leaves significant room for interpretation. In the European Union, such interpretation is made even more difficult because the application of the method article needs to comply with EU law, in particular with the fundamental freedoms and the State aid rules. Finally, the method article of the OECD Model has - in the aftermath of the Base Erosion and Profit Shifting Project - undergone adaptations, the impact of which requires further analysis. This book aims to provide an in-depth analysis of all the current issues related to the application of articles 23A and 23B of the OECD Model. The topics discussed include: the method article and unilateral measures to avoid double taxation; the method article and allocation conflicts; conflicts of qualification under articles 23A(1) and 23B(1) of the OECD Model; the credit method and different taxes on income and on capital; the exemption method with proviso safeguarding progression; and relief from double taxation and EU State aid law.