Interpreting Double Tax Agreements

Posted On Friday, September 24, 2021

535, 558 (1995) (citing the technical explanation of a previous contract between the United States and Belgium in 1970 to determine whether reinsurance should be included in the coverage of the independent agent provision of the 1971 contract between the United States and Japan); Riley v. Comm`r, 74 T.C 414, 427 (1980) (comparison of the technical declarations of two contracts for the determination of the domicile of a temporary visitor to Canada). In addition, tax treaties are generally applied only by the country of origin, so there are only a few cases left where two countries actually interpret the same term.286 Although the country of residence is also the interpreter, the tax treaties themselves have additional mechanisms, such as the cartel procedure and arbitration clauses, who attempt to resolve disputes leading to double taxation.