Balakina Z.V. International Tax Concept of the Beneficial Owner of Income and the Right to Use and Dispose Income

Abstract: The present article is devoted to the problems of interpreting the international 'against-tax-avoidance' concept of the beneficial owner of income aimed at counteracting illegal implementation of double taxation treaties. In her research Balakina analyzes the definition of the beneficial owner of income fixed in Clause 2 of Article 7 of the Tax Code of the Russian Federation through such definition criterion as a personal right to use and dispose income. Having analyzed approaches described in OECD Commentaries, foreign legal precedents, points of view of foreign and Russian scientists on internatioinal taxation, and written explanations of the Ministry of Finance of Russia, the author comes to the conclusion that the definition criterion of the beneficial owner iof income fixed in Article 7 of the Tax Code of the Russian Federation does not bear any significant meaning and does not clarify the aforesaid concept. On the contrary, it creates pluralism of opinions regarding what the right to use and dispoise income actually means. The methodological basis of the research consists of general and specific scientific methods and techniques such as dialectical, formal logical, comparative, stryctured system approaches, methods of analysis, synthesis and others. Application of the aforesaid methods allows to combine theoretical analysis with solution of practical tasks that are significant for interpreting and implementing the concept of the beneficial owner of income. The main contribution of the author is that she offers her own definition of the beneficial owner of income instead of the definition fixed in Clause 2 of Article 7 of the Tax Code of the Russian Federation and suggests to inclue this definition in Article 3 of the Typical OECD Treaty No. 84 'On Concluding International Treaties on Avoiding Double Taxation and Prevention of Fiscal Evasion' approved by the decree of the Government of the Russian Federation on February 24, 2010.

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