THE OECD
Committee on Fiscal Affairs has invited public comments on draft
changes
to the Commentary on Article 17 of the OECD Model Tax Convention,
which
deals with cross-border income derived from the activities of
entertainers
and sportsmen.
Under
Article 17 of the OECD Model Tax Convention,
the State in which the activities of a non-resident entertainer or
sportsman
are performed is allowed to tax the income derived from these
activities. This
regime differs from that applicable to the income derived from other
types
of activities making it necessary to determine questions such as who
is an
entertainer or sportsman, what are the personal activities of an
entertainer
or sportsman as such and what are the source and allocation rules for
activities
performed in various countries.
The
Committee on Fiscal Affairs, through a subgroup of its Working Party 1
on Tax Conventions and Related Questions, has examined these and other
questions
related to the application of Article 17 and released the discussion
draft which includes
proposals for additions and changes to the Commentary on the OECD
Model Tax
Convention. These changes,however, will not be included in the 2010
update of the MC. Interested parties may submit their comments before
31st July,2010.
Interestingly,
the draft proposes that source country taxation right should not extend
to conference speakers ( former politicians receiving fees for speaking
assignments.) It also proposes to exclude prize money won by race horse
owners or race car owners as opposed to jockeys or race car drivers.
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