OECD Publishes Comments Received on BEPS Action 6

; posted on
March 28th, 2017

OECD publicly published 33 comments received on draft examples prepared as part of the follow-up work on the interaction between the treaty provisions of the report on BEPS Action 6 and the treaty entitlement of non-CIV funds.

Treaty Entitlement Of Non-CIV Funds

In the consultation draft, the OECD said that there is a need to continue to examine issues related to the treaty entitlement of non-CIV funds to ensure that the new treaty provisions that are being considered adequately address the treaty entitlement of non-CIV funds. The continued examination of these issues would also address two general concerns that governments have about granting treaty benefits with respect to non-CIV funds:

  1. that non-CIV funds may be used to provide treaty benefits to investors that are not themselves entitled to treaty benefits and
  2. that investors may defer recognition of income on which treaty benefits have been granted.

Three Examples For Consultation

As part of the consultation, it was agreed that the following examples could be publicly released for comments with a view to determining whether or not they usefully clarify the application of the PPT rule to common transactions involving non-CIV funds:

  1. Regional investment platform example;
  2. Securitization company example;
  3. Immovable property non-CIV fund example.

Source: OECD, OECD - 33 Comments Received, OECD - Discussion Draft


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