Disposal of the fixed place of business : a further erosion of the residence state principle?

Resource Information

The work Disposal of the fixed place of business : a further erosion of the residence state principle? represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Disposal of the fixed place of business : a further erosion of the residence state principle?

Creator

• Muñoz, M.A

Subject

• PE
• case law
• disposal
• fixed place of business

Language

eng

Summary

The term "disposal" used in the commentaries on article 5 of the OECD model brings uncertainty, especially regarding the issues of whether a contractual relationship with a subsidiary used by its parent company is for its own business, and whether a service provider that factually uses another company's premises, or if an enterprise that uses premises that are owned by another enterprise for any reason constitute a physical permanent establishment (PE). The commentary on article 5 of the OECD Model contains four examples and states which of those constitute a PE. This article analyses each of these examples to determine if they have points in common and, if from that analysis a definition of disposal results, it identifies some rules that form a disposal test. The author also analyses the relationship between the term "disposal" and other PE provisions, when the definition of disposal could affect the determination of whether there is a PE under other deeming or special provisions. The article analyses some of the most important case law regarding the disposal or the right of use test to establish whether the case law has reached the clarity and certainty that the OECD has tried to achieve in the 1977 and 2003 amendments to the commentary

Citation source

In: Tax notes international. - Falls Church. - Vol. 59 (2010),

Geographic coverage

International

Language note

English