Michael McGowan, Andrew Thomson and Emma Hardwick Analyze Treaty Abuse Prevention in Tax Journal ArticleOctober 31, 2015
On October 31, Tax Journal published the article “Preventing treaty abuse,” authored by Mr. McGowan, Mr. Thomson and Ms. Hardwick. The article analyzes the final report on OECD BEPS Action 6, which proposes anti-treaty-shopping provisions for tax treaties. The authors cover potential issues resulting from the draft article on limitation of benefits, the scope of and reactions to the draft principal purpose test, and next steps on both fronts. The article concludes by discussing the provisions proposed in the report to deal with specific issues and considering whether domestic anti-avoidance rules conflict with tax treaties.