Article 3 of the Chile-UK Double Taxation Convention defines a „person“ as „individual, company and other entities of persons.“ Once it is determined which party invokes the benefits of a contract, it is necessary to determine where that person resides. In order to be a „resident“ of a contracting state, in accordance with Article 4 of the Chile-UK Double Taxation Convention (and a double taxation agreement signed by Chile on the basis of the OECD and UN model), we have a collection of global double taxation conventions in English (and other languages, if available) to assist members in their applications. If you`re having trouble finding a contract, call the application team on (0)20 7920 8620 or email us at library@icaew.com. A company established in a state with which Chile has a double taxation agreement can claim the benefits of that contract, even if the revenues in question are attributable to a stable institution that the company owns in a third country, except in cases of abuse or improper use of tax treaties. The subject informed the tax authorities that its branch in the United Kingdom had been classified as a stable institution under the Double Taxation Convention between the United Kingdom and the United States, so that the tax department had assumed the definition of a stable establishment under Article 5 of Chile`s double taxation conventions (based on OECD and United Nations models). According to the tax administration test, a „permanent economic institution“ is a simple threshold for measuring the degree of participation or participation of a state-based corporation in the economic activity of another state. In this sense, a stable establishment is part of a company that carries out all or part of its business through a fixed place of activity located in another state. Article 5, paragraph 2, provides examples of establishments and operating offices. On the basis of the above considerations and Articles 1, 3, 4 and 5 of the Chilean Double Taxation Convention, the tax authority has concluded that the person who has benefited from the treaty benefits is based in a third country and that his branch or stable establishment in the United Kingdom does not meet the requirements to be considered a state established in the United Kingdom in the United Kingdom. As a result, she was not entitled to contractual benefits.

(1) In particular, following an earlier analysis and information provided by the applicant, the tax department considered that: that the branch for the application of the Chile-UK double taxation agreement was not considered a „resident person“, since a comprehensive agreement (SI 2003/3200) and a letter of exchange to be read with the agreement came into force and had an effect: the taxpayer stated that he was assessing an investment by buying foreign shares.