Article 30 - Limitation of benefits - Lithuania

ARTICLE 30 LIMITATION OF BENEFITS [ REPLACED by paragraph 1 of Article 7 of the MLI ] 1. [Benefits of this Agreement shall not be available to a resident of a Contracting State, or with respect to any transaction undertaken by such a resident, if 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. Where by reason of the provisions of paragraph 1 a resident of a Contracting State is denied the benefits of this Agreement in the other Contracting State, the competent authority of the other Contracting State shall notify the competent authority of the first-mentioned Contracting State.] The following paragraph 1 of Article 7 of the MLI replaces Article 30 of this Agreement: ARTICLE 7 OF THE MLI PREVENTION OF TREATY ABUSE (Principal Purposes Test provision) Notwithstanding any provisions of [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].