The Concept of a Collective Investment Vehicle in the OECD Model Tax Convention - The requirements for tax treaty benefits
(2012) HARN60 20121Department of Business Law
- Abstract
- Nearly US$25 trillion is currently invested through Collective Investment Vehicles (hereinafter: “CIVs”) worldwide. CIVs calculate net asset values (hereinafter: “NAV”) on a daily basis, since such values are the basis for subscriptions and redemptions. In calculating net asset values, a CIV must take into consideration any withholding tax benefits by applicable tax treaties. CIVs require certainty regarding their entitlement to treaty benefits The aim of this thesis is to examine the concept of a CIV as established in the 2010 OECD Commentary on the OECD Model Tax Convention and to present the requirements investment funds need to fulfil to qualify as a CIV for tax treaty benefits in its own right. This study establishes that there are... (More)
- Nearly US$25 trillion is currently invested through Collective Investment Vehicles (hereinafter: “CIVs”) worldwide. CIVs calculate net asset values (hereinafter: “NAV”) on a daily basis, since such values are the basis for subscriptions and redemptions. In calculating net asset values, a CIV must take into consideration any withholding tax benefits by applicable tax treaties. CIVs require certainty regarding their entitlement to treaty benefits The aim of this thesis is to examine the concept of a CIV as established in the 2010 OECD Commentary on the OECD Model Tax Convention and to present the requirements investment funds need to fulfil to qualify as a CIV for tax treaty benefits in its own right. This study establishes that there are six requirements that need to be fulfilled: a fund needs to be (1) widely held, (2) hold a diversified portfolio of securities (3) is subject to investor-protection regulation in the country where it is established and qualifies as an (4) person, (5) resident of one of the contracting States and (6) beneficial owner of the income it receives. These requirements are compared with two forms of Dutch investment vehicles to show the difficulties for investment vehicles to obtain tax treaty access.
The OECD tried to establish a concept which makes it clear which requirements investment vehicles need to fulfil in order to qualify as a CIV for tax treaty benefits in its own right. The various OECD Member States have different forms available for investment vehicles, different tax rules or special regimes available for investment vehicles. It is difficult to find an overall concept for these funds in order to provide all the funds with the same tax treaty benefits. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2543911
- author
- Veldhuis, José LU
- supervisor
-
- Axel Hilling LU
- organization
- course
- HARN60 20121
- year
- 2012
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- taxation, collective investment vehicle, OECD, OECD Model Tax Convention, the Netherlands, investment vehicles
- language
- English
- id
- 2543911
- date added to LUP
- 2012-06-21 14:27:20
- date last changed
- 2012-06-21 14:27:20
@misc{2543911, abstract = {{Nearly US$25 trillion is currently invested through Collective Investment Vehicles (hereinafter: “CIVs”) worldwide. CIVs calculate net asset values (hereinafter: “NAV”) on a daily basis, since such values are the basis for subscriptions and redemptions. In calculating net asset values, a CIV must take into consideration any withholding tax benefits by applicable tax treaties. CIVs require certainty regarding their entitlement to treaty benefits The aim of this thesis is to examine the concept of a CIV as established in the 2010 OECD Commentary on the OECD Model Tax Convention and to present the requirements investment funds need to fulfil to qualify as a CIV for tax treaty benefits in its own right. This study establishes that there are six requirements that need to be fulfilled: a fund needs to be (1) widely held, (2) hold a diversified portfolio of securities (3) is subject to investor-protection regulation in the country where it is established and qualifies as an (4) person, (5) resident of one of the contracting States and (6) beneficial owner of the income it receives. These requirements are compared with two forms of Dutch investment vehicles to show the difficulties for investment vehicles to obtain tax treaty access. The OECD tried to establish a concept which makes it clear which requirements investment vehicles need to fulfil in order to qualify as a CIV for tax treaty benefits in its own right. The various OECD Member States have different forms available for investment vehicles, different tax rules or special regimes available for investment vehicles. It is difficult to find an overall concept for these funds in order to provide all the funds with the same tax treaty benefits.}}, author = {{Veldhuis, José}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Concept of a Collective Investment Vehicle in the OECD Model Tax Convention - The requirements for tax treaty benefits}}, year = {{2012}}, }