The Resource Belgium v A : F.12.0112.N

Belgium v A : F.12.0112.N

Belgium v A : F.12.0112.N
Belgium v A : F.12.0112.N
Judgment by Court of Cassation (Supreme Court), Belgium, judgment date 9 January 2015. A performing artist appeared in Belgium but payment for his appearances was to an Irish company which had no permanent establishment in Belgium. Under Belgian domestic law, payments made for appearances by performing artists were liable to income tax even if the payment was made to a third party such as a company and such payments were to be included in assessing the income of a non-resident. Under art. 7 of the Belgium-Ireland double taxation agreement, the profits of a company were taxable only in the state of residence of the company. Under art. 17 of the double taxation agreement, payments to performing artists were taxable in the state where the work was done. The Belgian revenue assessed the taxpayer for tax and the taxpayer appealed successfully to the Court of Appeal and the revenue appealed to the Supreme Court. In this case the tax treaty does not comply with the OECD Model/Commentaries. The Supreme Court decided that the combination of arts 7 and 17 of the Belgium-Ireland double taxation agreement overrode the domestic revenue law and meant that if payments were made to an Irish company for the appearance of a professional artist in Belgium, those payments could not be taxed in Belgium under art 17 of the double taxation agreement unless the Irish company did business through a permanent establishment in Belgium
Citation source
In: International tax law reports. - London. - Vol. 18 (2015),
De Broe, L
Geographic coverage
  • European Union
  • Europe
Language note
  • English
  • Dutch
Baker, P
  • case law
  • double taxation
  • intermediary
  • entertainer
  • tax treaty
  • non-resident
Belgium v A : F.12.0112.N

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