Access to Treaty Benefits

S. 3081. Introduction

The current Model Double Taxation Convention on Estates and Inheritances and on Gifts was published on June 3, 1982, at the proposal of the Committee on Fiscal Affairs by the OECD. Since then, it remains the current reference model for how the MSs (Member States) should deal with double taxation for inheritance taxes.

Today, the international treaty network of DTCs (Double Tax Treaties) for income and capital far exceeds the one dealing with inheritances double taxation. It appears that inheritance taxes are being pushed aside, so there is a low level of coordination for tax collection when it comes to cross-border cases.

This trend is contrary to the OECD proposal that seeks to encourage the MSs to adopt measures to harmonize how taxes are levied on estates, inheritances, and gifts.

Even from an academic point of view, the neglect of inheritance taxes is also reflected in the lack of literature and documentation dealing with these. Consequently, it is necessary to delve into the subjective scope in Article 2 to comprehensively understand this type of tax’s correct interpretation.

In absence of treaty protection, the beneficiary has a high chance of being subjected to do...