Video (Open Access): Dual residence and tie-breaker rules: complications in an expatriate's first year of relocation

January 18 2023

Open Access Video

Dual residence and tie-breaker rules: complications in an expatriate’s first year of relocation

This video analyzes a recent decision of the Indian Income Tax Appellate Tribunal (ITAT). In that case, the taxpayer (an individual) had relocated from India to Singapore for taking up employment. In the relevant tax year (first year of relocation), he was dual resident of India and Singapore as per the respective tax laws. Hence, the ITAT was required to apply the tie-breaker rules contained in Art. 4(2) of the India-Singapore tax treaty. With due respect, the ITAT’s approach and conclusion seem difficult to reconcile with.

For Patrons (case notes):

Tie-breaking under Art. 4(2) of tax treaties: For determining center of vital interests, what carries greater weightage - personal relations or economic relations with a Contracting State?

Could lack of employees negate existence of place of its effective management (POEM) in a jurisdiction?

For Patrons and Subscribers (Articles):

Could a holiday home be considered as a permanent home for the tie-breaker rules in Art. 4(2) of tax treaties?

POEM: Is situs of board meetings a sufficient factor?