How fixed is a permanent establishment?

Resource Information

The work How fixed is a permanent establishment? 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, Books.

Label

How fixed is a permanent establishment?

Creator

• Schaffner, J

Subject

• PE
• UN Model
• VAT
• agency PE
• OECD Model
• double taxation
• e-commerce
• force of attraction
• tax treaty
• allocation of profits

Language

eng

Summary

Permanent establishment is the key concept for allocating taxation rights in respect of business income. The author discusses the permanent establishment criteria under conditions of e-commerce and the service economy. He shows that the OECD Model Convention and its commentaries already offer the basis for the evolution of the analysis of the concept, and that the preservation of permanent establishment protects and maintains the level playing field between capital importing and capital exporting economies. He examines in depth (I) the prevalence of commercial coherence over geographic coherence, (II) the role of value-added tax, (III) services permanent establishment, (IV) relevant definitions of "activity" and "personnel", (V) multiple permanent establishments, (VI) supervision activity and sub-contracting, (VII) the differences between civil law and common law concepts of representation, (VIII) particular treatment of the insurance sector, (IX) the "force of attraction" concept and (X) and specific exceptions (e.g., transportation, artists and sportsmen, rental income, agricultural activities, pipelines). Taking into account important distinctions between two model conventions (OECD and UN), as well as pertinent EU directives and the impact of EU law, the author proposes minor amendments to the OECD Model that adapt it to economic reality and current trends in jurisprudence and that can be implemented immediately. An appendix includes Article 5 and its commentaries as they have evolved since 1963, with the successive addenda and deletions

Geographic coverage

International

Index

no index present

Language note

English

Literary form

non fiction

Series statement

Series on international taxation

Series volume

42