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Here you can access relevant source documents which support the summaries of key tax developments in Ireland, the UK and internationally

Source documents include:

  • Chartered Accountants Ireland’s representations and submissions
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CCAB-I Response to Discussion Draft on Action 6 (Prevent Treaty Abuse) of the BEPS Action Plan

47 – 49 Pearse Street, Dublin 2, IRELAND
Tax Treaties, Transfer Pricing and Financial Transactions Division
OECD BEPS Project
2, rue André Pascal
75775 Paris Cedex 16
France

By eMail to taxtreaties@oecd.org

9 April 2014

Dear Sirs

Comments On Discussion Draft On Action 6 (Prevent Treaty Abuse) Of The Beps Action Plan

We refer to the above titled document. It is highly unsatisfactory that such a short timeframe be allowed for analysis and comment on a document of this complexity with such potentially far-reaching consequences. We are therefore limiting our com ments on this occasion to one key observation.

Proposal on Limitation of Benefits

Paragraph A.1.a.i) contains a proposal on Limitation of Benefits. Were this proposal to be generally adopted, it would place considerable constraints on the location of ownership of companies attempting to benefit from tax treaty provisions. The practical impact would be to limit such treaty benefits to companies owned within countries with major economies. This is because many companies indigenous to smaller countries, once they have grown to a certain size, must cast further afield than their country of tax residence for capital investment.

The document notes at paragraph 11 that the proposal is based “on provisions already found in a number of tax treaties, including treaties concluded by the United States but also in some treaties concluded by Japan and India”. We suggest that such a limitation is only tolerable in the context of major economies such as the United States, Japan and India.

It is surely beyond the remit of the BEPS Project to prejudice commercial activities within smaller countries in comparison to their counterparts in larger economies. This proposal is unacceptable.

You may wish to note that this response is from a representative body. The Consultative Committee of Accountancy Bodies – Ireland is the representative committee for the main accountancy bodies in Ireland. It comprises Chartered Accountants Ireland, the Association of Chartered Certified Accountants, the Institute of Certified Public Accountants in Ireland, and the Chartered Institute of Management Accountants, which represent a combined membership of some 40,000 accountants. Brian Keegan, Director of Taxation at Chartered Accountants Ireland (brian.keegan@charteredaccountants.ie, +353 1 6377 347) may be contacted if any further details in relation to this letter are required.

Yours faithfully

Paul Dillon, Chairman, CCAB-I Tax Committee

Source: Chartered Accountants Ireland. www.charteredaccountants.ie