U.S. Policy Against Treaty Shopping - from Aiken Industries to Anti-Conduit Regs: Critical View of Current Double-Step Approach in Light of Tax Treaties' Objectives and Purposes‪.‬

The scope of this article is to analyze the evolution of the mechanisms to fight treaty shopping in the U.S. Model Treaty and the role and efficiency regarding the application of domestic anti-conduit rules by the United States on its double tax treaties, in light of international tax principles and purposes. For that, this article will address the history and leading cases involved in the enactment of those domestic measures to fight tax treaty abuse. Additionally, the article will examine the structure and impact of U.S. Model Treaty existing provisions, notably Article 22 (Limitation on Benefits) to avoid the improper use of treaty benefits between the United States and the other Contracting State.