On January 6, 2017 the OECD published a Public Discussion Draft on non-CIV examples. The Discussion Draft is follow-up work on the interaction between the treaty provisions of the report on BEPS Action 6 and the treaty entitlement of non-CIV funds. In paragraph 14 of the final version of the BEPS report on Action 6 (Preventing the Granting of Treaty Benefits in Inappropriate Circumstances) the OECD indicated that it would continue to examine issues related to the treaty entitlement of non-CIV funds to ensure that the new treaty provisions included in the report on BEPS Action 6 adequately address the treaty entitlement of these funds.
As part of the follow-up work on this issue, on March 24, 2016 the OECD published a consultation document on the treaty entitlement of non-CIV. This consultation document included a number of specific questions related to concerns, identified in the comments received on previous discussion drafts related to the Report on Action 6, as to how the new provisions included in that Report could affect the treaty entitlement of non-CIV funds as well as possible ways of addressing these concerns. The comments received in response to that consultation document were published on the OECD website on April 22, 2016.
According to the OECD the latest discussion draft, that was published on January 6, 2017, has been prepared to provide stakeholders with information on the subsequent developments in the work on the interaction between the treaty provisions of the report on BEPS Action 6 and the treaty entitlement of non-CIV funds, including the conclusions reached at the May 2016 meeting of Working Party 1* and the subsequent work on the development of examples related to the application of the principal purposes test (PPT) rule included in the Report on Action 6 with respect to some common transactions involving non-CIV funds. The discussion draft invites comments on three draft examples under consideration by the Working Party for inclusion in the Commentary on the PPT rule.
The followed draft examples are included in the Public Discussion Draft published on January 6, 2017:
· Regional investment platform example
· Securitisation company example
· Immovable property non-CIV fund example
The Working Committee invites interested parties to send their comments on these three examples. The draft examples and the comments received will be discussed by Working Party 1 at its February 2016 meeting. Comments should be sent by February 3, 2017 at the latest by e-mail to This email address is being protected from spambots. You need JavaScript enabled to view it. in Word format (in order to facilitate their distribution to government officials). They should be addressed to the Tax Treaties, Transfer Pricing and Financial Transactions Division, OECD/CTPA.
Click here to be forwarded to the Public Consultation Draft: BEPS ACTION 6 - Discussion Draft on non-CIV examples which was published by the OECD on January 6, 2017 as available on the website of the OECD, which will open in a new window.
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