Effectiveness of the Beneficial Ownership Test in Conduit Company Cases

<p>Countries enter into double tax agreements with the economic objective of preventing double taxation of cross-border transactions. To achieve this objective, the contracting states agree reciprocally to restrict their substantive tax law. That is, a major policy of double tax agreements is to reduce double taxation of residents of states that are parties to the agreement. Residents of third states sometimes contrive to obtain treaty benefits typically by interposing a person or a conduit entity in one of the contracting states. In order to ensure that a resident of a contracting state who claims treaty benefits is entitled to them in substance, double tax agreements should be interpreted according to their substantive economic effect. Generally, double tax agreements follow the pattern of the OECD Model Tax Convention. The OECD Model Convention addresses the double taxation of dividends, interest and royalties, commonly collectively known as "passive income", in Articles 10, 11 and 12 respectively. These provisions usually operate by reducing withholding tax imposed by a source state on passive income that flows from the source state to a resident state. In order to prevent a resident of a third state from obtaining a source state withholding tax reduction by interposing a person or a conduit entity in the resident state, the OECD Model Convention requires the immediate recipient of passive income to be the "beneficial owner" of that income. That is, the OECD Model Convention requires the immediate recipient to be an owner in a substantive economic sense. Courts and commentators have difficulty in interpreting and applying the concept of beneficial ownership to conduit entities that are corporations, commonly referred to as "conduit companies". They have attributed the cause of the difficulty to the absence of a definition of the term "beneficial owner" in the OECD Model Convention. This thesis argues that the difficulty in applying the beneficial ownership concept to conduit companies has arisen not because of the absence of the meaning of the concept, but because logically and from an economic perspective the concept cannot be applied to companies in general, not to conduit companies in particular. The beneficial ownership test was meant to be a test of economic substance. From an economic perspective, the benefit or the burden of a contract entered by a company is economically enjoyed or borne by its shareholders. That is, in substance a company cannot be considered as owning income beneficially. From this consideration, it follows that conduit companies can never be considered entitled to treaty benefits. Nevertheless, the OECD Model Convention applies the beneficial ownership test to conduit companies pursuant to an assumption that at least in some cases conduit companies can be the beneficial owners of passive income. The Model Convention's assumption is based on the legal perspective that courts conventionally adopt. According to this legal perspective, companies hold income beneficially because they exist as separate legal entities from their shareholders. Courts find themselves battling these opposing perspectives when applying the beneficial ownership test to conduit companies. In order to make income tax law work efficiently, courts that are obliged to determine whether to honour claims to treaty benefits made by conduit companies have preferred to employ the legal perspective. Courts have justified this approach by adopting surrogate tests for the actual beneficial ownership test. Most of the surrogate tests do not relate to the concept of ownership at all. This thesis categorises the surrogate tests as "substantive business activity" and "dominion". By analysing reported cases, the thesis identifies deficiencies in these tests. One of the proposed outcomes of the thesis is to suggest an alternative approach for deciding conduit company cases. The thesis suggests that courts should consider an arrangement as a whole and investigate reasons for the existence of an immediate recipient of passive income in the specific corporate structure. The thesis also recommends amendments in the official commentary on Articles 10, 11 and 12 of the OECD Model convention in order to address the conceptual shortcomings inherent in those Articles.</p>

Effectiveness of the Beneficial Ownership Test in Conduit Company Cases

<p>Countries enter into double tax agreements with the economic objective of preventing double taxation of cross-border transactions. To achieve this objective, the contracting states agree reciprocally to restrict their substantive tax law. That is, a major policy of double tax agreements is to reduce double taxation of residents of states that are parties to the agreement. Residents of third states sometimes contrive to obtain treaty benefits typically by interposing a person or a conduit entity in one of the contracting states. In order to ensure that a resident of a contracting state who claims treaty benefits is entitled to them in substance, double tax agreements should be interpreted according to their substantive economic effect. Generally, double tax agreements follow the pattern of the OECD Model Tax Convention. The OECD Model Convention addresses the double taxation of dividends, interest and royalties, commonly collectively known as "passive income", in Articles 10, 11 and 12 respectively. These provisions usually operate by reducing withholding tax imposed by a source state on passive income that flows from the source state to a resident state. In order to prevent a resident of a third state from obtaining a source state withholding tax reduction by interposing a person or a conduit entity in the resident state, the OECD Model Convention requires the immediate recipient of passive income to be the "beneficial owner" of that income. That is, the OECD Model Convention requires the immediate recipient to be an owner in a substantive economic sense. Courts and commentators have difficulty in interpreting and applying the concept of beneficial ownership to conduit entities that are corporations, commonly referred to as "conduit companies". They have attributed the cause of the difficulty to the absence of a definition of the term "beneficial owner" in the OECD Model Convention. This thesis argues that the difficulty in applying the beneficial ownership concept to conduit companies has arisen not because of the absence of the meaning of the concept, but because logically and from an economic perspective the concept cannot be applied to companies in general, not to conduit companies in particular. The beneficial ownership test was meant to be a test of economic substance. From an economic perspective, the benefit or the burden of a contract entered by a company is economically enjoyed or borne by its shareholders. That is, in substance a company cannot be considered as owning income beneficially. From this consideration, it follows that conduit companies can never be considered entitled to treaty benefits. Nevertheless, the OECD Model Convention applies the beneficial ownership test to conduit companies pursuant to an assumption that at least in some cases conduit companies can be the beneficial owners of passive income. The Model Convention's assumption is based on the legal perspective that courts conventionally adopt. According to this legal perspective, companies hold income beneficially because they exist as separate legal entities from their shareholders. Courts find themselves battling these opposing perspectives when applying the beneficial ownership test to conduit companies. In order to make income tax law work efficiently, courts that are obliged to determine whether to honour claims to treaty benefits made by conduit companies have preferred to employ the legal perspective. Courts have justified this approach by adopting surrogate tests for the actual beneficial ownership test. Most of the surrogate tests do not relate to the concept of ownership at all. This thesis categorises the surrogate tests as "substantive business activity" and "dominion". By analysing reported cases, the thesis identifies deficiencies in these tests. One of the proposed outcomes of the thesis is to suggest an alternative approach for deciding conduit company cases. The thesis suggests that courts should consider an arrangement as a whole and investigate reasons for the existence of an immediate recipient of passive income in the specific corporate structure. The thesis also recommends amendments in the official commentary on Articles 10, 11 and 12 of the OECD Model convention in order to address the conceptual shortcomings inherent in those Articles.</p>

THE EFFECTIVENESS OF THE PICTURE STORY METHOD IN INCREASING STUDENT'S READING INTEREST CLASS 2 AT SOURCE STATE ELEMENTARY SCHOOL, BANDUNG

Student’s reading interest Elementary school, especially grade 2 SD Sumber Bandung, is still low because they prefer to play online games, watch television, etc. This factor causes their reading ability is still lacking. In addition, there are reading books in school institutions that are still monotonous without pictures so that children get bored easily and are not interested in reading them. This study purposed to see how effectiveness of pictural story book in increasing reading inters of grade 2 students at SD Sumber Bandung. The method has been use in this research is an experimental research method with one group pre test – post test design. The use of learning media to foster children's interest in reading is by using picture story books. This picture book is more developed if the teacher dares to be creative. This picture story book is effectively used in the second grade students of SD Sumber Bandung because it includes games and education. In the picture story book there are several learning activities including observing, telling, reading and sorting the pictures so that they become a complete story. Furthermore, the teacher can add / collaborate on strategies or methods that can support the use of other picture story books to be more innovative in each lesson. The result of this research is that picture story books are very effective in increasing reading interest of student Grade 2 SD sumber bandung Keywords :; Story book; interest in reading, SD Sumber Bandung

Thinking Like a Source State in a Digital Economy

Thinking Like a Source State in a Digital Economy

Drifts of the marginally stable burning frequency in the X-ray binaries 4U 1608–52 and Aql X–1

ABSTRACT We detect millihertz quasi-periodic oscillations (mHz QPOs) using the Rossi X-ray Time Explorer (RXTE) from the atoll neutron-star (NS) low-mass X-ray binaries 4U 1608–52 and Aql X–1. From the analysis of all RXTE observations of 4U 1608–52 and Aql X–1, we find mHz QPOs with a significance level &gt;3σ in 49 and 47 observations, respectively. The QPO frequency is constrained between ∼4.2 and 13.4 mHz. These types of mHz QPOs have been interpreted as being the result of marginally stable nuclear burning of He on the NS surface. We also report the discovery of a downward frequency drift in three observations of 4U 1608–52, making it the third source that shows this behaviour. We only find strong evidence of frequency drift in one occasion in Aql X–1, probably because the observations were too short to measure a significant drift. Finally, the mHz QPOs are mainly detected when both sources are in the soft or intermediate states; the cases that show frequency drift only occur when the sources are in intermediate states. Our results are consistent with the phenomenology observed for the NS systems 4U 1636–53 and EXO 0748–676, suggesting that all four sources can reach the conditions for marginally stable burning of He on the NS surface. These conditions depend on the source state in the same manner in all four systems.

100 MeV/100 kW ACCELERATOR ADJUSTMENT FOR THE NSC KIPT NEUTRON SOURCE PHYSICAL START UP

The NSC KIPT SCA Neutron Source uses 100 MeV/ 100 kW electron linear accelerator as a driver for the generation of the initial neutrons. The individual State tests of the accelerator were successfully carried out in July 2018 and pilot operation of the accelerator was started in autumn 2018. Since then the following were carried out: preparation and providing of the SCA Neutron Source State Integrating tests, adjustment and improvement of the accelerator technological system performance, optimization of the electron beam parameters, preparation to the SCA Neutron Source physical start up. The main results of the accelerator operation and methods of performance improve are described in the paper.

A spectral study of the black hole X-ray binary MAXI J1820+070 with AstroSat and NuSTAR

ABSTRACT MAXI J1820+070 is a newly discovered transient black hole X-ray binary, which showed several spectral and temporal features. In this work, we analyse the broad-band X-ray spectra from all three simultaneously observing X-ray instruments onboard AstroSat, as well as contemporaneous X-ray spectra from NuSTAR, observed during the hard state of MAXI J1820+070 in 2018 March. Implementing a combination of multicolour disc model, relativistic blurred reflection model relxilllpcp, and a distant reflection in the form of xillvercp, we achieve reasonable and consistent fits for AstroSat and NuSTAR spectra. The best-fitting model suggests a low temperature disc (kTin ∼ 0.3 keV), iron overabundance (AFe ∼ 4–5 solar), a short lamp-post corona height (h ≲ 8Rg), and a high corona temperature (kTe ∼ 115–150 keV). Addition of a second Comptonization component leads to a significantly better fit, with the kTe of the second Comptonization component being ∼14–18 keV. Our results from independent observations with two different satellites in a similar source state indicate an inhomogeneous corona, with decreasing temperature attributed to increasing height. Besides, utilizing the broader energy coverage of AstroSat, we estimate the black hole mass to be 6.7–13.9 M⊙, consistent with independent measurements reported in the literature.

Accelerating and Improving AlphaZero Using Population Based Training

AlphaZero has been very successful in many games. Unfortunately, it still consumes a huge amount of computing resources, the majority of which is spent in self-play. Hyperparameter tuning exacerbates the training cost since each hyperparameter configuration requires its own time to train one run, during which it will generate its own self-play records. As a result, multiple runs are usually needed for different hyperparameter configurations. This paper proposes using population based training (PBT) to help tune hyperparameters dynamically and improve strength during training time. Another significant advantage is that this method requires a single run only, while incurring a small additional time cost, since the time for generating self-play records remains unchanged though the time for optimization is increased following the AlphaZero training algorithm. In our experiments for 9x9 Go, the PBT method is able to achieve a higher win rate for 9x9 Go than the baselines, each with its own hyperparameter configuration and trained individually. For 19x19 Go, with PBT, we are able to obtain improvements in playing strength. Specifically, the PBT agent can obtain up to 74% win rate against ELF OpenGo, an open-source state-of-the-art AlphaZero program using a neural network of a comparable capacity. This is compared to a saturated non-PBT agent, which achieves a win rate of 47% against ELF OpenGo under the same circumstances.

Transition probabilities in generalized quantum search Hamiltonian evolutions

A relevant problem in quantum computing concerns how fast a source state can be driven into a target state according to Schrödinger’s quantum mechanical evolution specified by a suitable driving Hamiltonian. In this paper, we study in detail the computational aspects necessary to calculate the transition probability from a source state to a target state in a continuous time quantum search problem defined by a multiparameter generalized time-independent Hamiltonian. In particular, quantifying the performance of a quantum search in terms of speed (minimum search time) and fidelity (maximum success probability), we consider a variety of special cases that emerge from the generalized Hamiltonian. In the context of optimal quantum search, we find it is possible to outperform, in terms of minimum search time, the well-known Farhi–Gutmann analog quantum search algorithm. In the context of nearly optimal quantum search, instead, we show it is possible to identify sub-optimal search algorithms capable of outperforming optimal search algorithms if only a sufficiently high success probability is sought. Finally, we briefly discuss the relevance of a tradeoff between speed and fidelity with emphasis on issues of both theoretical and practical importance to quantum information processing.