Keith Gordon looks at a case which considers how to interpret a Double Taxation Treaty in the light of a deeming provision in the domestic law
When I worked at the Tax Law Rewrite Project at the turn of the millennium, one of the targets for simplification was the removal or reduction of deeming provisions wherever possible. A deeming provision is one where the statute starts off with a particular situation and then pretends that it is another (i.e. X is treated as Y). The purpose of a deeming provision is to allow the consequences of Y to follow even though the reality of the situation is X (and not Y).