This article provides critical reflections on the 2017 revision of article 4(3) of the OECD Model Convention and its Commentary regarding dual residence of persons other than individuals. These changes and their implementation warrant an assessment of their desirability, including an in-depth review of their impact on other provisions of the OECD Model, as well as the (re)consideration of alternative mechanisms to resolve dual-residence situations. In the light of the above, this article provides a comprehensive analysis of the evolution of rules governing dual residence of companies formed by incorporation and addresses, from a policy as well as a legal perspective, the main criticalities associated with the above-mentioned revisions, most notably the overarching legal uncertainty that such amendments may generate, the potential instances of international double taxation that may arise therefrom and the excessive discretion with which competent authorities would be entrusted in dealing with the matter, a circumstance against which taxpayers may be left with very limited judicial remedies. Full-text Paper.

This article analyses the meaning of the definitions of dividend and interest in the OECD Model by reference to their historical evolution. In the dividend definition the origin of 'other corporate rights' is traced to a 1958 OEEC Working Party minute in which the same French expression used in six treaties is translated into English in six different ways, one of which was 'other similar corporate profit-sharing rights'. Hence the reference in the title to something lost in translation. Income can fall within both definitions (dividend and interest) by being taxed as a dividend and falling within the listed items of interest. The Commentary attempts to resolve the overlap in thin capitalization situations by unsatisfactory amendments made in 1992 based on whether the lender effectively shares the risks run by the company: the overlap needs to be solved by an amendment to the Model.Full-text Paper.