STARI Lunchtime Seminar - Reducing Complexity in DTA Interpretation through Digital Innovation

SYNOPSIS

This paper considers an area of complexity in international tax law – the interpretation of double taxation agreements (DTAs). In this paper we examine DTA interpretation complexity by focussing on individual residence articles in DTAs based on the OECD Model Tax Convention on Income and on Capital (the OECD Model), which underpins more than 3,000 bilateral DTAs worldwide. Residence articles based on Article 4 of the OECD Model are ideal candidates for examining complexity in international tax, given the relevance of foreign case law to their interpretation.

Establishing an individual’s tax residence in a contracting State to the DTA is a precondition for applying DTA articles and obtaining treaty protection from double taxation. Where an individual is a tax resident under the domestic law of both contracting States, Article 4 sets out a series of five tiebreaker tests which are sequentially applied to conclusively determine the individual’s residence for the purpose of the DTA. Although the text of residence articles may appear quite straightforward, recent case law decisions have shown that there can be complexities and difficulties in interpreting the tiebreaker tests. Key terms used in the residence article are undefined in the OECD Model, and the test concerned with identifying the State where a taxpayer’s personal and economic relations are closer—which is often the decisive tiebreaker test in practice—relies upon a broad facts and circumstances approach. Whereas in the domestic context the doctrine of precedent is instrumental in ensuring consistency of interpretation, there is an absence of an equivalent feature in the international law context.

Nonetheless, there are compelling reasons to promote measures that may foster a common interpretation of DTA residence articles. DTAs are a vital feature of the international tax regime and there is a need to achieve greater consistency in the way they are interpreted and applied. Previous literature has identified that the decisions of higher courts in other jurisdictions can be better utilised in DTA interpretation. Accepting this premise, we argue that in the current digital age, a resource could be created that would enable courts to readily access such decisions. The justification for such a resource is particularly strong in the context of DTA residence articles, as it is recognised in the literature that common international meanings must be applied if the residence article is to serve its function of resolving dual residence disputes.

Our analysis of recent cases indicates that judges are receptive to considering relevant foreign cases when such decisions are brought to their attention by counsel. It could be that difficulties in accessing relevant foreign case law decisions have impeded the attainment of consistent DTA interpretation. The digital era provides an unprecedent opportunity for overcoming these barriers and developing a truly global jurisprudence on DTA residence articles. In our view, a comprehensive international database of DTA case law decisions originating from higher courts would be a highly beneficial pursuit in the digital age.

SPEAKER

Dr John Minas

Dr John Minas
Associate Professor, Department of Business Law and Taxation
Monash Business School

Dr John Minas is an Associate Professor in the Department of Business Law and Taxation, Monash Business School at Monash University. His research is focussed on examining taxation law issues with significant national and international tax policy implications. His main area of research interest and expertise is the taxation of capital gains. His other research interests include the tax residence of individuals, the interpretation of double taxation agreements, and taxation and the circular economy. A monograph based on John’s PhD dissertation, “The Implications of Capital Gains Tax Preferences”, was published by Oxford University Press in 2019.

John’s research on the taxation of capital gains has been cited by the United States Congressional Research Service, the Grattan Institute, the Australian Broadcasting Corporation, and the Australian Financial Review. He has presented his research, by invitation, at Commonwealth Treasury, and at CIRANO.

John has been the recipient of nationally competitive funding from the Australia Housing and Urban Research Institute (AHURI). He is a Research Affiliate with the Tax and Transfer Policy Institute at the Australian National University (ANU). John is currently the Director of the Tax Law and Policy Research Group in the Department of Business Law and Taxation, and he is co-editor of the Journal of Australian Taxation (an A-ranked journal of the Australian Business Deans Council list). John holds a PhD in Taxation from the University of New South Wales (UNSW) and a Master of International Taxation (UNSW).

CHAIR

Dr Vincent Ooi

Dr Vincent Ooi
Assistant Professor of Law
Singapore Management University

DETAILS

Date: 28 May 2026, Thursday
Time: 12pm to 1pm [Registration commences from 11.30am and Lunch will be provided]
Venue: Meeting Room 5-04, Level 5, Yong Pung How School of Law, Singapore Management University

REGISTRATION

Please click HERE to register. Registration closes on 20 May 2026, 12pm SGT or when the workshop is fully subscribed, whichever is earlier.

Successful registrant will receive a confirmation email by 22 May 2026 from ccla@smu.edu.sg to confirm your registration.