Alternative relief provision. In cases where an anti-abuse clause refers to non-residents of a Contracting State, it could be provided that the term “shall not be deemed to include residents of third States that have income tax conventions in force with the Contracting State from which relief from taxation is claimed and such con- ventions provide relief from taxation not less than the relief from taxation claimed under this Convention.” These provisions illustrate possible approaches. The specific word- ing of the provisions to be included in a particular treaty depends on the general approach taken in that treaty and should be determined on a bilateral basis. Also, where the competent authorities of the Contracting States have the power to apply discretionary provisions, it may be considered appropriate to include an additional rule that would give the competent authority of the source country the discre- tion to allow the benefits of the Convention to a resident of the other State even if the resident fails to pass any of the tests described above.
