Resumen de The Interaction of the Principal Purpose Test (and the Guiding Principle) with Treaty and Domestic Anti-Avoidance Rules
In the previous contribution, which carried out a detailed analysis of the principal purpose test (PPT), the author had indicated that interesting issues arise with respect to the interaction of the PPT (and the guiding principle) with other treaty based or domestic based anti-avoidance rules. In this contribution, the author, firstly, discusses the interaction of the test with the inherent anti-abuse rule. Secondly, the author discusses the relationship of this test with existing treaty general anti-avoidance rules (GAARs) and specific anti-avoidance rules (SAARs) such as the limitation of benefits clause, the beneficial ownership clause, holding/time period provisions introduced in the articles dealing with dividends/capital gains as well as the anti-abuse rule with respect to permanent establishments in a third State. Lastly, the author analyses the interaction of the PPT with domestic anti-avoidance rules such as judicial doctrines, statutory GAARs and SAARs. It is pertinent to note that this contribution should be read in conjunction with the author’s previous contribution published in the January edition of the journal.
