OECD Tax Treaties: Who Beneficially Owns Dividends in a Total Return Swap?

摘要

In recent years, the United States government has paid increasing attention to the use of total return swaps (TRSs) by foreigners as a means to avoid dividend withholding taxation on U.S. equities. Such attention includes an investigation, and recent report by the Senate Permanent Subcommittee on Investigations. In addition, the U.S. Treasury Department has recently explained proposed changes to tax laws, included in the Obama Administration's 2010 budget, which would limit the ability of foreigners to avoid dividend withholding taxation on equity swaps that reference U.S. equities.