On 21 November 2014 the OECD released a discussion draft in respect of follow-up work on Action 6 of the action plan on base erosion and profit shifting (BEPS) in respect of preventing the granting of tax treaty benefits in certain circumstances. This report raises further issues and invites comments from interested parties by 9 January 2015. A public consultation meeting on Action 6 is to be held in Paris on 22 January 2015 and interested parties submitting comments on the issues should register before 9 January if they wish to speak at this meeting.
The original report issued in connection with Action 6 of BEPS accepted that further work would be required on the relevant provisions of the Model Tax Convention and in particular the rule on limitation of benefits. It was also accepted that further work would be required on policy considerations related to the entitlement of collective investment vehicles (CIVs) and non-CIV funds to treaty benefits. The draft amendments to the Model treaty and commentary already issued in respect of prevention of the granting of tax treaty benefits are therefore still to be updated for these issues. The discussion draft sets out the specific issues on which interested parties may submit their views.
