The German Federal Tax Court („Bundesfinanzhof“) recently rendered a decision on the interpretation of the double tax convention between Germany and Hongkong. The court confirmed its view on the OECD Commentaries which can be only taken into account for the interpretation of the convention insofar they existed at the time of the conclusion of the bilateral tax treaty. Furthermore, the judgment contains interesting remarks about the relevance of reservations and observations made by OECD member countries in respect of the OECD Model Convention and its Commentaries. Michael Lang analyzes the decision in detail.
