Reasonable Test and the PPT Clause
a Technique for an Objective Interpretation or an Element that Induces Subjectivity
DOI:
https://doi.org/10.46801/2595-7155-rdtia-n10-1Keywords:
international taxation, Comparative law, OECD, BEPS, PPT clause, reasonable, test, UK GAAR, UK, General Anti-abuse LawAbstract
This article addresses the legal nature of the reasonableness test foressen in paragraph 7 of Action 6 of the BEPS Plan. It is intended to analyze the origin of the reasonableness test and the misunderstandings in literature that arises regarding the objective or subjective aspect of the referred test, seeking to bring light to the doctrinal divergences on the subject. Based on the premise obtained from the inicial analysis, this article will make a critique of the content of the PPT Clause, using comparative law doctrine to demonstrate that the precarious import by the PPT Clause of the reasonableness test ends up implying legal uncertainty and manifest subjectivism in the application of the legislation.
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