The relevance of the OECD and UN Model Conventions and their Commentaries for the interpretation of Italian tax treaties

Introduction

This chapter aims to provide a comprehensive overview of the degree ofconsistency of the treaties to avoid double taxation concluded by Italy with theOECD Model Tax Convention on Income and Capital and the United Nations ModelDouble Taxation Convention between Developed and Developing Countries(respectively the OECD Model and the UN Model). It is worth pointing out fromthe very outset that all the treaties are generally modelled on the OECD Modelbut also that the treaties are, in large part, consistent with both Models, dueto the similarity between the OECD Model and the UN Model. However, as will beshown in this chapter, there are cases in which all or some of the treatiescomply with the UN Model but not with the OECD Model.

In some cases, these variations are due to several relatively recentmodifications of the OECD Model. Indeed, modifications to the OECD Model overrecent years have reduced the degree of consistency between the OECD Model andthe treaties, which have not been modified accordingly.

In most other cases, all or some of the treaties comply only with the UN Modeldue to a choice made by Italy to adopt clauses that are divergent from the OECDModel.

The analysis of the points of convergence and divergence from the Models willadhere to the numerical listing of the different articles of Italy’s treaties.Therefore, in respect of each clause, this chapter indicates convergence ordivergence, with the result that such a schematic structure should clarify whichof the clauses included in the Models can be considered as ‘standardclauses’ of the treaties. The term ‘standard clause’ will beitalicized when it can be inferred that a clause of the Models has been adoptedby Italy in the vast majority of its treaties, thereby constituting a kind ofdeliberate policy choice.