The Influence of the COVID-19 Pandemic on the Application of the OECD PPT, GAARs and (Some) SAARs:

Lack of Substance for the Protection of Health

Article by: Dennis Weber (Editor) (Amsterdam Centre for Tax Law (ACTL) of the University of Amsterdam; Loyens & Loeff) – first published on KlewerTaxBlog

Many States have incorporated General Anti-Avoidance Rules (GAARs) into their tax laws to prevent tax avoidance; within the EU, a GAAR is even mandatory for corporate taxation since 1 January 2019 (Article 6 of the EU Anti-Tax Avoidance Directive (EU ATAD)). States are recommended in the OECD Model Tax Convention on Income and Capital to include a Principal Purpose Test (OECD PPT) in their tax treaties and in the UN Model Double Tax Convention for tax treaties between developed and developing countries. Finally, States also include Special Anti-Avoidance Rules (SAARs) in their national laws (such as CFC rules, thin cap rules, earning stripping rules, anti-hybrid rules, etc.) or tax treaties.

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