New trends in the definition of permanent establishment / edited by prof. Guglielmo Maisto.

Format:

Book

Contributor:

Maisto, Guglielmo, editor.

Series:

EC and international tax law series ; Volume 17.

EC and International Tax Law Series ; Volume 17

Language:

English

Subjects (All):

Double taxation--Treaties.

Double taxation.

International business enterprises--Taxation--Law and legislation.

International business enterprises.

Physical Description:

1 online resource (1,020 pages) : illustrations.

Edition:

1st ed.

Place of Publication:

Amsterdam, The Netherlands : IBFD, 2019.

Summary:

This book presents a unique and detailed examination of the definition of permanent establishment in an international context.

Contents:

Cover

Title

Copyright

Acknowledgements

Foreword

Part One: Overview of Article 5 OECD Model

Chapter 1: The History of the Permanent Establishment Concept: Two Questions

1.1. Introduction

1.2. Was there an overriding "preparatory and auxiliary" condition underlying article 5(4) of the pre-2017 OECD and UN models?

1.3. What was wrong with the independent agent exception that was included in the 2001 UN Model?

1.4. Conclusion

Chapter 2: Article 5 of the OECD Model: Recent Amendments and Upcoming Challenges

2.1. Introduction

2.2. Recent changes to the article 5 PE definition

2.2.1. Dependent agent PE

2.2.2. Specific activity exemptions

2.2.3. Contract splitting

2.3. Implementation via the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI)

2.4. Challenges posed by the digitalization of the economy

2.4.1. The "user participation" proposal

2.4.2. The "marketing intangibles" proposal

2.4.3. The "significant economic presence" proposal

2.4.4. Conclusion

Part Two: Open Issues under Pre- and Post-BEPS OECD Model: Physical PE

Chapter 3: Permanent Establishment: Geographic and Temporal Issues

3.1. Introduction

3.2. Physical PE

3.2.1. Distinct geographic location

3.2.2. Degree of permanence

3.2.3. Temporal requirement solutions

3.3. Agency PE

3.3.1. Geographic location

3.3.2. Temporal requirement

3.4. UN Model on services

3.4.1. Geographic location

3.4.2. Temporal requirement

3.5. UN Model on insurance enterprises

Chapter 4: Problems of Interpretation of Article 5(3) OECD Model

4.1. Introduction.

4.2. Some historical data of relevance to interpret article 5(3) OECD Model: Exception vs deeming rule and the importance of the geographical and commercial coherence tests for construction PEs

4.2.1. The PE concept applies per fixed place and to a stream of income and not per taxpayer

4.2.2. When the PE concept reduced its fixity but not the connection with a stream of income: The PE for construction works

4.2.3. Vagueness and asymmetries in the interpretation of article 5(3) OECD Model: A historical perspective

4.2.4. Article 5(3) OECD Model: A first conclusion

4.3. A different model: The UN version of the construction PE and its diminished importance after 2017

4.4. The BEPS effect and its aftermath: The splitting up of contracts to avoid the time threshold of article 5(3) OECD Model

4.5. The objective scope of article 5(3) OECD Model

4.5.1. Introduction

4.5.2. What is "building, construction or installation"?

4.5.3. On-site planning and supervision

4.6. The subjective scope of article 5(3) OECD Model

4.6.1. Introduction

4.6.2. Contractors and subcontractors

4.6.3. Partnerships and joint ventures

4.6.4. Final note

4.7. Computation of the 12-month time threshold

4.7.1. Introduction

4.7.2. Initial date

4.7.3. Final date

4.7.4. Temporal interruptions

4.8. Attribution of profits and article 5(3) OECD Model

4.9. Conclusion

4.10. Bibliographical note

Chapter 5: PE Negative List and Fragmentation of Activities Within Groups of Companies

5.1. Introduction

5.2. The negative list

5.2.1. History and original purpose

5.2.1.1. The League of Nations' Mexico (1943) and London (1946) Draft Models

5.2.1.2. The original proposal made by WP1 of the OEEC Fiscal Committee

5.2.1.3. Subsequent amendments of the PE negative list through the 1963 OECD Draft Model.

5.2.1.4. From the 1963 OECD Draft Model to the 2014 OECD Model

5.2.1.5. What the history of the provision teaches us

5.2.2. Are the activities listed in article 5(3) of the 1963 OECD Draft Model and in article 5(4) of the 1977-2014 OECD Model to be regarded as a priori PE exclusions?

5.2.2.1. The activities expressly listed in article 5 of the OECD Model should be regarded as a priori PE exclusions

5.2.2.1.1. The text of article 5 of the OECD Model (1963-2014)

5.2.2.1.2. The Commentaries on Article 5 of the OECD Model (1963-2014)

5.2.2.1.3. Other relevant materials

5.2.2.1.4. Countries' practice

5.2.2.1.5. Interim conclusions

5.2.2.2. The activities listed in article 5 of the OECD Model must have, in concreto, a preparatory or auxiliary character

5.2.2.2.1. Materials supporting this interpretation

5.2.2.2.2. Countries' practice

5.2.2.2.3. Interim conclusions

5.2.3. Changes brought about by the BEPS Project

5.2.3.1. The purpose of the BEPS Project in respect of the PE negative list

5.2.3.2. Amendments to the 2017 OECD Model

5.2.3.3. The MLI and the PE negative list

5.3. The concept of "preparatory or auxiliary" activity

5.4. Fragmented activities and PE avoidance

5.4.1. The pre-BEPS scenario

5.4.1.1. OECD Model and Commentaries

5.4.1.2. Countries' practice

5.4.2. The effects of the BEPS Project

5.4.2.1. New article 5(4.1) of the 2017 OECD Model

5.4.2.2. The MLI and fragmentation of the activities

5.5. Conclusions

Part Three: Open Issues under Pre- and Post-BEPS OECD Model: Agency PE

Chapter 6: Concluding Contracts and Playing the Principal Role in Concluding Contracts

6.1. Introduction

6.2. Relevant MLI language and changes from pre-2017 Model

6.3. Traditional concepts woven with revised standards - Textual observations.

6.3.1. Economically binding contract is sufficient (anti-commissionaire revision)

6.3.2. Principal role leading to the conclusion of contracts

6.4. Habitually

6.5. Conclusion of contracts

6.6. Habitually plays the principal role leading to the conclusion of contracts

6.7. Prior Commentary pointed to the Principal Role Clause

6.8. The principal role

6.9. Routinely concluded without material modification

6.10. Promotion/marketing activities

6.11. Procurement

6.12. Examples of local economic presence not affected by the 2017 DAPE changes

6.13. Restructuring of distribution model structures to LRD or to master distributer/blocker

6.14. How are companies reacting?

6.15. Final comments

Chapter 7: Agent PE: The "in the name of" Concept

7.1. Introduction

7.2. The "in the name of" concept before the MLI

7.2.1. France - Société Zimmer Ltd case

7.2.2. France - Valueclick case

7.2.3. Norway - Dell Products case

7.2.4. Italy - Philip Morris case

7.2.5. Italy - Boston Scientific case

7.2.6. Spain - Roche Vitamins Europe case

7.2.7. Spain - Dell Products case

7.3. The impact of the MLI on the "in the name of" concept

7.4. Final remarks

Chapter 8: The Independent Agent Exception

8.1. Introduction

8.2. Background

8.3. The rationale for the independent agent exception: Historical evolution

8.4. The new article 5(6)

8.4.1. An entirely new provision

8.4.2. Deletion of broker, general commission agent or any other agent of an independent status

8.4.3. Inclusion of "paragraph 5 shall not apply"

8.5. The independence of the agent

8.5.1. Independence status test

8.5.2. Acting in the ordinary course of business

8.6. The exclusion of the independent agent exception: A new second sentence of paragraph 6

8.6.1. Origins.

8.6.2. Meaning of acting exclusively or almost exclusively on behalf of one or more enterprises to which it is closely related

8.7. Implementation of the new article 5(6)

8.8. Conclusions

Part Four: Need to Expand the PE Concept?

Chapter 9: Permanent Establishment and the Digital Economy

9.1. Introduction

9.2. Adjusting the PE concept to the challenges of the digital economy

9.3. Implementing the change in the existing tax treaty network

9.4. The virtual PE and the object and purpose of the BEPS MLI

9.5. Introducing the virtual PE concept through an amendment to the BEPS MLI

9.6. The virtual PE and relations between the BEPS MLI and EU law

9.6.1. The 2018 proposed EU directive and the intra-EU issues

9.6.2. The 2018 proposed EU directive and the impact on relations with third countries

9.6.3. Amending EU law or the BEPS MLI first?

9.7. Conclusions

Part Five: Country Reports

Chapter 10: Australia

10.1. Introduction

10.1.1. Domestic PE concept and departures from the OECD Model

10.1.2. Tax treaty practice and departures from the OECD Model

10.1.3. Signing of the MLI and reservations made/options chosen

10.1.4. Ongoing development of the PE concept under domestic and treaty law

10.2. PE definition and its interpretation under tax treaties and domestic law

10.2.1. Fixed place of business PE

10.2.1.1. In general

10.2.1.2. The "at the disposal" requirement

10.2.1.3. The "fixity" and "permanency" requirements

10.2.2. List of fixed places of business PE

10.2.3. Construction PE

10.2.3.1. Time threshold

10.2.3.2. Supervisory or consultancy activities: Building site, construction or installation project

10.2.3.3. Assembly projects

10.2.3.4. Definition of "building site" and "construction or installation project"

10.2.3.5. Deemed construction PEs.

10.2.3.6. Calculation of the time period.

Notes:

Includes bibliographical references.

Description based on print version record.

Description based on publisher supplied metadata and other sources.

ISBN:

90-8722-553-9

OCLC:

1151193226