The Use of the OECD Commentary
Elgar Tax Law and Practice series
Chapter 11: OTHER INCOME AND INTERNATIONAL TRANSPORT (ARTT. 21 AND 8)
Art. 21 has a simple structure as it consists of just an allocation rule (Art. 21 § 1) and a rule on the force of attraction on other income effectively connected to a PE (Art. 21 § 2), but has two essential dimensions that attribute to Art. 21 a central role in the structure of the Model: the ‘other income’ dimension, and the third-country dimension. The first essential dimension is that Art. 21 plays a residual role in respect of all the other classes of income and focuses on the so-called ‘other income’ (i.e. income ‘other than’ that falling in other treaty rules): by taxing the other income Art. 21 fills gaps in the structure of the treaty but does not create new taxable situations. The second essential dimension is that Art. 21 is the only treaty rule that deals expressly with income sourced in third countries (i.e. countries that are neither the RC nor the SC bound by a specific bilateral treaty). The combination of these two essential dimensions of Art. 21 provides a matrix in which the analysis of Art. 21 is divided into two main parts: first, the analysis of other income ‘not dealt with by other articles of the treaty’, i.e. sourced in the SC (see infra at paras 11.07–11.51); and second, the analysis of other income ‘from sources not expressly mentioned’, i.e. sourced in third countries (see infra at paras 11.52–11.61). In turn, each of these two main parts is divided in two sub-parts,
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.