Introduction to the Law of Double Taxation Conventions

S. 164

17.1 Structure

540

In addition to the OECD Model on Income and on Capital (hereafter OECD Income Tax Model), there is an OECD model in the field of estate, inheritance and gift taxes (hereafter OECD Inheritance Tax Model). It was published in 1966 and modified in 1982 (cf. m.no. 25). Gift taxes were not included in the substantive scope of the model until 1982. In practice, taxes on income and on capital, on the one hand, and estate, inheritance and gift taxes, on the other hand, are regulated by different DTCs. The conclusion of a common DTC remains an exception (e.g. Germany’s DTCs with Denmark and Sweden, and many French DTCs).

541

The structure of the existing OECD Inheritance Tax Model is similar to that of the OECD Income Tax Model. When the person and the respective taxes are covered by the DTC, one of the allocation rules definitely applies. The method article (Art. 9A or 9B OECD Inheritance Tax Model) will determine whether double taxation is avoided by the credit or the exemption method.

17.2 Scope of the convention

542

The scope of the OECD Inheritance Tax Model is set out in Art. 1 and Art. 2. In contrast to the 1966 version of this model, the 1982 version covers gifts in addition to e...