The Taxation of Partnerships Term Paper by Nicky

A look at how partnerships are taxed in terms of international law and conventions.
# 150699 | 1,465 words | 5 sources | APA | 2012 | US
Published on Mar 30, 2012 in Economics (Taxation) , Law (International)

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The paper examines international taxation provisions for partnerships under the Organisation for Economic Co-operation and Development (OECD) Convention. The paper looks at the differences that affect the tax teatment of partnerships, the issue of partnerships that involve three states and the four types of transparency.

Differences that Affect the Tax Treatment of Partnerships
Taxation of Partnerships
Partnerships Involving Three States
Types of Transparency
Summary & Conclusion

From the Paper:

"According to the OECD "Model Tax Convention on Income and on Capital" partnerships cases that involve three States "pose difficult problems with respect to the determination of entitlement to benefits under Conventions." (2000) Where a partner is a resident of one State, "the partnership is established in another State and the partner shares in partnership income arising in a third State then the partner may claim the benefits of the Convention between his State of residence and the State of the source of the income to the extent that the partnership's income is allocated to him for the purposes of taxation in his State of residence." (OECD, 2000) Furthermore, if the partnership is taxed as a resident of the State in which the partnership is established "the partnership may itself claim the benefits of the Convention between the State in which it is established and the State of source." (OECD, 2000) In cases such as this or a case of 'double benefits' the State of source "...may not impose taxation which is inconsistent with the terms of either applicable Convention therefore, where different rates are provided for in the two Conventions, the lower will be applied." (OECD, 2000)"

Sample of Sources Used:

  • Model tax convention on income and on capital, Volume 1 - Taxation (Organisation for Economic Co-operation and Development) Model Tax Convention on Income and on Capital, Organisation for Economic Co-operation and Development. Committee on Fiscal Affairs. (2000) OECD Publishing.
  • Engelen, F.A. (2004) Interpretation of Tax Treaties under International Law; a Study of Articles 31, 32, and 33 of the Vienna Convention on the Law of Treaties and Their Application to Tax Treaties. Vol. 7 of Doctoral Series - International Bureau of Fiscal Documentation. IBFD 2004.
  • The Application of the OECD Model Tax Convention to Partnerships (1999) OECD Issues in International Taxation. NO. 6.
  • Padmore v. Commissioners of Inland Revenue (1987) Simon's Tax Cases. 1987 STC.
  • Baker, Philip (2002) The Application of the Convention to Partnerships, Trusts and Other Non-Corporate Entities. GITC Review Vol. II No.1. November 2002.

Cite this Term Paper:

APA Format

The Taxation of Partnerships (2012, March 30) Retrieved May 25, 2022, from

MLA Format

"The Taxation of Partnerships" 30 March 2012. Web. 25 May. 2022. <>