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Article 28 - Limitation of Benefits - LatviaExtract ARTICLE 28 LIMITATION OF BENEFITS [Modified by paragraph 1 of Article 7 of the MLI] [1. The competent authorities upon their mutual agreement, may deny the benefits of this Agreement to a resident of a Contracting State, or with respect to any transaction undertaken by such a resident, if in their opinion the main purpose of the creation or existence of such a resident or of the transaction undertaken by him, was to obtain the benefits under this Agreement that would not otherwise be available. 2. The competent authorities of the Contracting States may consult together with a view to develop a commonly agreed application of the provisions of this Article.] The following paragraph 1 of Article 7 of the MLI applies and supersedes the provisions of this Agreement to the extent of incompatibility: ARTICLE 7 OF THE MLI - PREVENTION OF TREATY ABUSE (Principal Purposes Test provision) Notwithstanding any provisions of [1] the Agreement, a benefit under [the 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 [the Agreement]. FOOTNOTES:- 1 . The texts of the boxes in [Square brackets] and in italics throughout this document indicate minor terminology changes made to the text of the MLI.
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