Ninth session of the Committee of Experts on International Cooperation in Tax Matters

In accordance with ECOSOC decision 2013/239 of 23 July 2013, the ninth session of the Committee of Experts on International Cooperation in Tax Matters was held from 21 to 25 October 2013 at the Palais des Nations in Geneva.

The meeting discussed, inter alia, issues related to the next update of the United Nations Model Double Taxation Convention between Developed and Developing Countries, including various issues related to the concept of “permanent establishment” (Article 5), the meaning of “auxiliary activities” under Article 8 (Transportation), the “force of attraction” principle in Article 7, the Commentary to Article 9 (Associated Enterprises), Article 12 on Royalties, and Exchange of Information (Article 26). The Committee also discussed cross-cutting issues under the UN Model, such as taxation of services and interaction of the Model with climate change mechanisms.
Other issues on the agenda of the session included work towards the next update of the United Nations Practical Manual on Transfer Pricing for Developing Countries, foreign direct investment issues and corporate taxation, including resource taxation issues for developing countries, and capacity development.
As this was the first session of the new Membership of the Committee, a Chairperson and other Officers were elected at the beginning of the session. Establishment of Subcommittees and appointment of their Coordinators were also decided on during the course of the session.

Outcome:

• Report on the ninth session of the Committee of Experts on International Cooperation in Tax Matters (E/2013/45-E/C.18/2013/6)

Substantive matters: 

• Model Tax Convention – Issues for consideration by the Committee (E/C.18/2013/3)
• Transfer Pricing Issues for Consideration by the Committee (E/C.18/2013/4)
• Foreign direct investment issues and corporate taxation, including resource taxation: Issues for consideration by the Committee (E/C.18/2013/5)
• U.S. Approach to Application of Income Tax Treaties to Payments through Hybrid Entities (E/C.18/2013/CRP.1)
• Note on Article 5: the meaning of the same or a connected project (E/C.18/2013/CRP.2)
• Note on Auxiliary Activities under Article 8 (E/C.18/2013/CRP.4)

• Additional Letter from International Air Transport Association (IATA) on Article 8 Issues
• Taxation of Services—Paper by Mr. Brian Arnold on Options for a Fees for Technical Services Article (E/C.18/2013/CRP.5)
• Note on tax treaty issues arising from the granting and trading of emission permits and emission credits under the UN Model Tax Convention E/C.18/2013/CRP.6 (clean copy; marked up copy)
• Secretariat Note: Papers on Tax Treaty Negotiation (E/C/18/2013/CRP.7)
• Secretariat Note on Extractive Industries Taxation (E/C.18/2013/CRP.13)
• United Nations Capacity Development Programme on International Tax Cooperation Progress Report (E/C.18/2013/CRP.14)
• Secretariat Note—Comments on the United Nations Practical Transfer Pricing Manual for Developing Countries (E/C.18/2013/CRP.15)
• Taxation of Services—Paper by Mr. Tizhong Liao (E/C.18/2013/CRP.16)
• Secretariat Note—Recent Work of the Committee on Tax Treatment of Services (E/C.18/2013/CRP.17)
• International Bureau for Fiscal Documentation Note on the Practical Implementation of the UN Model (E/C.18/2013/CRP.18) (Final published version by the IBFD)
• Secretariat Report on the Expert Group Meeting on Extractive Industries Taxation of May 2013 (E/C.18/2013/CRP.19)
• Note on Automatic Exchange of Information (E/C.18/2013/CRP.20)
• Proposal to update Article 26 (Exchange of information) of the United Nations Model Double Taxation Convention between Developed and Developing Countries and its Commentary (E/C.18/2013/CRP.21)

Background Information: 

• ECOSOC resolution 2013/24 on “Committee of Experts on International Cooperation in Tax Matters”
• Report of the Secretary-General on “Further progress in strengthening the work of the Committee of Experts on International Cooperation in Tax Matters” (E/2013/67)
• Report on the eighth session of the Committee of Experts on International Cooperation in Tax Matters (E/2012/45-E/C.18/2012/6)
• United Nations Model Double Taxation Convention between Developed and Developing Countries (2011 update)
• United Nations Practical Manual on Transfer Pricing for Developing Countries
• UN Handbook on Selected Issues in Administration of Double Tax Treaties for Developing Countries
• Special Meeting of ECOSOC on International Cooperation in Tax Matters (29 May, 2013, New York) – Informal summary by the Secretariat