Conflicts of qualification which are not caused by diverging domestic laws but are simply due to a different evaluation of facts or are due to a different interpretation of the treaty must be resolved, as usual, in the frame of a mutual agreement procedure, within which the necessary coordination has to be brought about. If, however, the conflict is the result of diverging domestic laws, it is the method-article which contains a perfect solution: the residence country has to grant tax relief if the source country levies its tax in accordance with the convention. In that sense a tax is levied in accordance with the convention as soon as both countries agree that the levy of tax does not constitute an infringement of the convention as seen from the perspective of the legal framework of the taxing country. In contrast, where the source country, according to its legal framework, loses the taxation right under the treaty, the residence country is not bound to grant tax relief; even not, if under its concept of law the source country is not precluded from charging the tax. The article elaborates on such and similar aspects of the phenomenon of conflicts of qualification.
