Role of Vienna Convention in Application and Interpretation of Tax Treaties - International Taxation - Income Tax

..... y in their context and in the light of its object and purpose. While India is not a party to the Vienna Convention, it contains many principles of customary international law, and the principle of interpretation, of Article 31 of the Vienna Convention, provides a broad guideline as to what could be an appropriate manner of interpreting a treaty in the Indian context also . Therefore, it would be worthy to understand some of the Articles of the Vienna Convention of Law of Treaties which would help appreciate the manner of application and interpretation of tax treaties. Principles enunciated in the Vienna Convention on Law of Treaties Article No. Article Heading Principle enunciated 26 .....

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Role of Vienna Convention in Application and Interpretation of Tax Treaties - International Taxation - Income Tax

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..... a basic principle. It states that treaties should be interpreted by first giving the ordinary meaning to the language. It is only if the ordinary meaning is ambiguous, or leads to illogical results, that the purpose may be considered. The context for the purpose of interpretation of a treaty shall comprise, in addition to the text, including its preamble and annexure Any agreement relating to the treaty which was made between all the parties in connection with the conclusion of the treaty; Any instrument which was made by one or more parties in connection with the conclusion of the treaty and accepted by the other parties as an instrument related thereto. The following shall be taken into accoun .....

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Role of Vienna Convention in Application and Interpretation of Tax Treaties - International Taxation - Income Tax

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..... authentic text only if the treaty so provides or the parties so agree. The terms of the treaty are presumed to have the same meaning in each authentic text. Except where a particular text prevails in accordance with paragraph 1, when a comparison of the authentic texts discloses a difference in meaning which the application of Articles 31 and 32 does not remove, the meaning which best reconciles the texts, having regard to the object and purpose of the treaty, shall be adopted. 34 General Rule regarding third states A treaty does not create either obligations or rights for a third State without its consent. 42 Validity and Continuance in force of treaties .....

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Role of Vienna Convention in Application and Interpretation of Tax Treaties - International Taxation - Income Tax

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..... ns by one party radically changes the position of every other party with respect to further performance of its obligations under the treaty. A material breach of a treaty, for the purposes of this Article, consists in: a repudiation of the treaty not sanctioned by the Convention; or the violation of a provision essential to the accomplishment of the object or purpose of the treaty. The foregoing paragraphs are without prejudice to any provision in the treaty applicable in the event of a breach. 61 Supervening impossibility of performance A party may invoke the impossibility of performing provision of a treaty as a ground for terminating or withdrawing from it, if .....

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Role of Vienna Convention in Application and Interpretation of Tax Treaties - International Taxation - Income Tax

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