ORPP logo
Image from Google Jackets

New Trends in the Definition of Permanent Establishment.

By: Material type: TextTextSeries: EC and International Tax Law SeriesPublisher: Amsterdam : IBFD Publications USA, Incorporated, 2019Copyright date: ©2019Edition: 1st edDescription: 1 online resource (1020 pages)Content type:
  • text
Media type:
  • computer
Carrier type:
  • online resource
ISBN:
  • 9789087225537
Subject(s): Genre/Form: Additional physical formats: Print version:: New Trends in the Definition of Permanent EstablishmentDDC classification:
  • 343.04
LOC classification:
  • K4475 .M357 2019
Online resources:
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.
Summary: This book presents a unique and detailed examination of the definition of permanent establishment in an international context.
Tags from this library: No tags from this library for this title. Log in to add tags.
Star ratings
    Average rating: 0.0 (0 votes)
No physical items for this record

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.

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

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.

There are no comments on this title.

to post a comment.

© 2024 Resource Centre. All rights reserved.