II. HIGH FIVE
The model text for BIT 1993 vs the 2015 revised version
1 DEFINITION OF INVESTMENT
1993: The draft was very broad 2015: It has been made more specific
WHY IS IT SIGNIFICANT?
Not every investment comes under the BIT definition. For instance, now, portfolio investments or hot money flows will not be considered under BIT
2 TAXATION
1993: Taxation was covered 2015: Taxation is not covered any more
WHY IS IT SIGNIFICANT?
Many cases, including that of Vodafone, were tax-related. Now, any law regarding taxation, including measures taken to enforce tax obligations, will not be covered under BIT
3 NATIONAL TREATMENT
1993: There were no specific guidelines to limit its scope 2015: Clear guidelines have been introduced
WHY IS IT SIGNIFICANT?
Treaty shall apply only to decisions taken by the Central government. Investment sops by states or local bodies will…
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Business Today (Digital) - 1 Issue, February 28, 2016