Issue of Tax Conflict Qualification and its Solution Based on UN Model Tax Convention
Despite the positive influence on the economies of developed and developing countries, cross-border economic activities of subjects of tax law promote to the emergence new challenges and hitherto novel problems in the branch of the international tax law. In this path, the dilemma of double non-taxation that is based on the fact of negative conflict of tax qualification became one of the main problems of modern international tax law. The fight against provision of such kind of illegal tax benefits have a double nature: on one side this fight is conducted by the countries at the local level by introduction of new punctual anti-abuse rules; on the other side organizations such as the Organization of Economic Cooperation and Development (OECD) and the United Nations (UN) separately combat against conflict of tax qualification at international level. In this regard, international acceptable instruments of combating such as treaties for the avoidance of double taxation receive the main role at the subnational level. Notwithstanding quantitative superiority of the agreements based on model tax convention of OECD, nowadays a similar model tax convention, drafted by UN, plays an important role for developing countries. This article deals with the theoretical and practical emergence aspects of conflict of tax qualification, as well as with the relevant methods of fighting against the above-stated tax phenomenon in the UN model tax convention. The research was aimed at the analysis of the rules directed at suppression of conflict of tax qualification. For more detailed acquaintance with the features of the mentioned above convention, this article gives short historical outline concerning stages of development of United Nations model tax convention and regarding the main ways and means of overcoming a problem of double taxation. With thorough research of protective mechanisms against the conflict of tax qualification, the comparative analysis of the previous and current rules of the convention regarding mentioned tax phenomenon was carried out. At last, the final part of the article is providing legal appraisal of the current rules of mentioned convention concerning the raised questions and summarizing the results of research.