7.3.7 Double non-taxation in the case of tax avoidance

Even though double non-taxation is not limited to groups of companies, exploiting potential double non-taxation opportunities can be done more easily within groups of companies. Double non-taxation that is the result of the tax policy of one or both of the Contracting States is not in conflict with the objectives of the OECD MTC. The model specifically aims to combat double non-taxation in the case of abuse (i.e., unintended double non-taxation). Most provisions that aim to end double non-taxation do not make a distinction between intended and unintended non-taxation. However, this is the case for the switch-over clause. Therefore, if the exemption method is applied, requiring a switch-over clause would contribute to achieving the OECD MTC objectives.