Purposes of double taxation treaties and interpretation of beneficial owner concept in Ukraine

• Main Author: Pavlo Selezen
• Format: Article
• Language: English
• Published: Bucharest University of Economic Studies 2017-10-01
• Series: Juridical Tribune
• Subjects: interpretation; purposes of international treaties; double taxation treaties; beneficial ownership.
• Online Access: http://tribunajuridica.eu/arhiva/An7v11/2.%20Selezen.pdf
• ISSN: 2247-7195; 2248-0382

The term ‟beneficial owner” has been interpreted by Ukrainian courts concerning the application of double taxation treaties’ provisions since the adoption of the Tax Code of Ukraine in 2010. Changing nature of the beneficial owner concept, its importance as an instrument for treaty shopping counteraction and the necessity of its proper interpretation in the Ukrainian reality are the main factors that have a strong impact on the development of court practice concerning beneficial ownership. The article focuses on the prevention of tax avoidance as one of the purposes of double taxation treaties and its role in the interpretation of the term ‟beneficial owner”. The analysis is based on the practice of the Supreme Administrative Court of Ukraine on interpretation of the relevant provisions of the Convention between the Government of Ukraine and the Government of Switzerland on Avoidance of Double Taxation with respect to Taxes on Income and Capital as of 30 October 2000.