INTM159015 - OECD Model Tax Convention - Introduction

Legal Status

Revenue Policy, International, External Relations Group (Advisory) will advise on the interpretation of double taxation agreements where the point at issue is not covered in this guidance. Where a provision in a double taxation agreement is in the same terms in all relevant respects as the corresponding provision in the OECD Model, the Commentary on the OECD Model may be used as an aid to the interpretation of that provision. The exception is where the United Kingdom has entered an Observation or Reservation on the relevant part of the Commentary. These are reproduced at the end of the comments on the Article in question.

The United Kingdom courts have indicated their willingness to consider the Commentary as an aid to interpretation. Vinelott J stated in Sun Life Assurance Co of Canada v Pearson that the OECD Commentary ' can and indeed must be referred to as a guide to the interpretation of the treaty' 59TC page 310, also page 331).

As far as possible the latest Commentary should be used to interpret a double taxation agreement, even if an older version was current when it was negotiated (Model Convention introduction, paragraph 33).