Limitation on Benefits Clauses and EU Law

Journal
Calejo Guerra, J.
European Union
European Taxation 2011 (Volume 51), No. 2/3
Format/Price
JournalUSD 45

Limitation on Benefits clauses have been a feature of tax treaties entered into by the United States and various Member States in recent decades in an effort to prevent treaty shopping. In this article, the author examines their compatibility with EU law through an analysis of existing ECJ case law. After concluding that LOB clauses are in violation of EU law, the consequences of such incompatibility are analysed.