handbook-tb

Contents5. Article 13 of the United Nations Model Convention andtreaty practices among developing countries with respect totaxing capital gains ...................................1335.1 The definition of “immovable property”. ............1355.2 Movable property part of a permanent establishment . 1365.3 Entities holding immovable property directly orindirectly .......................................1375.4 Substantial participation in a company. .............1395.5 Residual taxing power ............................1406. Preventing avoidance of the tax on capital gains bynon-residents ........................................1426.1 Treaty shopping .................................1436.2 Indirect transfers ................................1446.3 Issuance of new shares and corporate reorganizations. 1517. Taxing former residents on capital gains .................1528. Conclusion ..........................................153Chapter IVLimiting interest deductions. ................................1551. Background .........................................1561.1 Debt and equity. .................................1561.2 Use of debt by taxpayers ..........................1571.3 Related-party debt in capitalizing an enterprise ......1591.4 Branch operations. ...............................1622. Non-tax concerns regarding excessive debt. ..............1633. Tax considerations regarding thin capitalization andrelated concerns ......................................1643.1 Determining whether a taxpayer has excessive debt. ..1653.2 Interest allocable to exempt or deferred income ......1723.3 Is all interest equal? ..............................1743.4 Interest paid to related parties .....................1763.5 Withholding taxes ...............................1794. Branch operations ....................................1825. Relevance of tax treaty provisions. ......................1846 Conclusion ..........................................184Bibliography ..............................................186xv