Treatment of capital gains in the Convention between Spain and Chile forthe avoidance of double taxationt: obeyed, but not complied

Abstract

In 2003, Spain and Chile signed a treaty to avoid double taxation. Despite the fact that the treaty excludes the possibility of taxing  indirect crossborder transfers, the Chilean tax administration (SII) has interpreted the treaty to the contrary. In 2014, a Spanish  company challenged the SII's interpretation, which was eventually overturned by the Santiago Court of Appeals. Despite this, the SII  has persisted in its extensive interpretation, generating doubts about the application of the treaty in this matter