Triangular Cases - Global Tax Treaties Commentaries

The chapter concerns limitations of bilateral tax treaties in multilateral situations (triangular cases). Such limitations result from the bilateral nature of tax treaties. Tax treaties based on the OECD Model or the UN Model are concluded by two parties, aiming to resolve juridical double taxation by reconciling source-based and residence-based taxation by the two states involved. But what tax treaties resolve as between two states they may not resolve where more than two states are involved. The purpose of the chapter is to provide a study of potential triangular cases under the OECD Model, including cases with two residence states and a source state involved (residence-residence-source triangular cases) and cases with a residence state and two source states involved (residence-source-source triangular cases). Further, some special issues shared by these triangular cases are dealt with, in particular the issue as regards treaty obligation imposed on the residence state to relieve double taxation in both residence- residence-source triangular cases and residence-source-source triangular cases