Basic Principles of Interpretation of law for interpreting a Treaty

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..... . Prior to the Vienna Convention, treaties were interpreted according to the customary international law. Some of the important principles of Customary International law in interpretation of tax treaties are as follows: Golden Rule - Objective Interpretation : - Ideally any term or word should be interpreted keeping its objective or ordinary or literal meaning in mind. The term has .....

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..... sion (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this Convention for the indirect benefit of residents of third States) To encourage free flow of international trade and investment To encourage transfer of technology To prevent discrimination between tax payers To provide a reasonable element of legal and fiscal certainty to investors and .....

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..... hould be given to each word which would be construed in the same manner wherever it occurs. Any provision should not be interpreted in isolation; rather the entire treaty should be read as a whole to arrive at its object and purpose. Reasonableness and consistency:- Treaties should be given an interpretation in which the reasonable meaning of words and phrases is preferred, and in which a con .....

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