Applying the OECD Principal Purpose Test in Accordance with EU Law: An Analysis of the Scope, Burden of Proof and Effects

This article analyses whether or not the OECD Principal Purpose Test (PPT) lacks compatibility with EU law and, if so, whether it would be possible for Member States to interpret and apply the PPT in accordance with EU law. The author concludes affirmatively, considering the similarities in scope between the PPT and the EU abuse of law framework. The author notes, however, differences regarding the burden of proof and legal effects, and proposes applying the standard of abuse in relations with third states.