Access to Treaty Benefits

S. 2361. Introduction

The non-discrimination provision of the OECD Model might just be the most interesting and controversial article of the entire convention. Article 24 OECD Model Convention is, to say the least, a peculiar article. First of all, it has no apparent connection to the rest of the model that deals with the allocation of taxing rights and thus tries to relieve double taxation. Moreover, the article itself seems unconnected. It is made up off six provisions that bear no real relation to one another, hence, the entire provision contains no overarching theory.

Non-discrimination provisions have been used in trade and commercial treaties long predating their implementation in modern tax treaties. This is especially true for the first paragraph that deals with national treatment. The other paragraphs started appearing in tax treaties in the second half of the 20^th century. It is also interesting to mention that the earliest version of the non-discrimination provision was intended to come in the form of a multilateral treaty between OEEC countries. This, however, was never realized since certain delegates found that it would be very extensive for a subject that did not cause a lot...