BEPS Action 6 - An inclusion of anti-abuse measures in tax treaties to prevent the improper use of a tax treaty - Are the measures suggested in BEPS Action 6 necessary from a Swedish perspective?

Abstract: The thesis provides an overview of the relationship between tax treaties and domestic law and issues that arise if a contracting state uses domestic anti-avoidance rules to prevent the improper use of a tax treaty. Improper use of a tax treaty is an issue addressed in the BEPS Action 6 report. The suggestion is to include a limitation-on-benefits clause in the OECD Model Convention, a principal purpose test as a general anti-avoidance rule in tax treaties and to change the title and preamble of the OECD Model Convention. An overview of the suggested provisions are provided for in the thesis. The provisions are suggested to be introduced via a multilateral instrument directly changing existing tax treaties assigned to the instrument. Issues regarding the implementation of the provisions are described in the thesis. An analysis is carried out regarding possible hinders for the provisions according to Swedish constitutional law, and the necessity of the suggested provisions according to current Swedish law.