In a recent article in Tax Notes International, H. David Rosenbloom and Fadi Shaheen argue that the base erosion and antiabuse tax (IRC section 59A, as enacted in 2017) is a potential violation of articles 23 and 24 of U.S. tax treaties. They say the BEAT does not override those treaties, so those agreements can be relied on to overcome the effects of the BEAT. In our opinion, that conclusion is wrong for two reasons: The BEAT is not a treaty violation, and even if were, it is a treaty override.
Avi-Yonah, Reuven S. "The Beat and Treaty Overrides: A Brief Response to Rosenbloom and Shaheen." Bret Wells, co-author. Tax Notes Int'l 92, no. 4 (2018): 383-91.
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