In-Depth Analysis of the Principal Purpose Test (PPT)

The Principal Purpose Test (PPT): Love It or Hate It

For international tax professionals, the Principal Purpose Test (PPT) is a double-edged sword.

On the one hand, its ambiguous nature makes it nearly impossible for wealthy individuals and corporations to avoid taxes as easily as before, forcing them to rely more heavily on tax experts.

On the other hand, that same ambiguity grants tax authorities significant discretionary power to deny treaty benefits, making even tax professionals struggle to navigate it.

As true international tax experts, KC Global embraces the challenges posed by the PPT head-on, striving to minimize tax risks for clients while maximizing tax efficiency.

In this article, we will conduct an in-depth analysis of the PPT.