Article 28 - Limitation of Benefits - Korea

ARTICLE 28 LIMITATION OF BENEFITS 1. Nothing in this Agreement shall be construed as restricting, in any manner, the application of any provisions of the laws or regulations of a Contracting State which are designed to prevent the avoidance or evasion of taxes, whether or not described as such. 2. [REPLACED by paragraph 1 of Article 7 of the MLI] [No person shall be entitled to the benefits of the Agreement, if its affairs were arranged in such a manner that the main purpose or one of the main purposes was to avoid taxes to which this Agreement applies.] The following paragraph 1 of Article 7 of the MLI replaces paragraph 2 of Article 28 of this Agreement: ARTICLE 7 OF THE MLI PREVENTION OF TREATY ABUSE (Principal purposes test provision) Notwithstanding any provisions of [this Agreement], a benefit under [this Agreement] shall not be granted in respect of an item of income if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of [this Agreement]. 3. In respect of Articles 10, 11, 12, 13 and 22, a resident of a Contracting State shall not be entitled to benefits otherwise accorded to residents of a Contracting State by the Agreement, if: (a) the resident is controlled directly or indirectly by one or more persons that are not residents of that Contracting State; or (b) the main purpose or one of the main purposes of any person concerned with the creation or assignment of a share, a debt-claim, or a right in respect of which the income is paid is to take advantage of these Articles by means of that creation or assignment.