id	author	title	date	pages	extension	mime	words	sentence	flesch	summary	cache	txt
ftr-485	Elvin, Bruce A.	The Recharacterization of Cross-Border Interest Rate Swaps: Tax Consequences and Beyond	2022	42	.pdf	application/pdf	20556	1158	59	Barring a state's characterization of such payments as a loan and their repayment as including interest, Article 7 may be applied without difficulty when interest rate swap payments are part of the business profits of an enterprise, as the OECD Report confirmed.'24 Withholding on interest income payments in these types of cross-border swaps would not necessarily be problematic but for the fact that a large percentage of tax treaties around the world, including many U.S. treaties, do not effectively alleviate double taxation of income payments originating from a nonperiodic payment recharacterized by one country into a loan bearing interest; in other words, the full amount of the interest payment may be subject to tax in both contracting states,90 a case of juridical double taxation.9 This type of double taxation primarily arises when, as under the OECD Model Convention, the tax treaty between the states of residence of the swap counterparties, N and M, does not grant the exclusive right to tax interest to the residence state of the interest recipient.'	cache/ftr-485.pdf	txt/ftr-485.txt