Permanent Establishments A Domestic Taxation, Bilateral Tax Treaty and OECD Perspective Fifth Edition Edited by Ekkehart Reimer, Stefan Schmid & Marianne Orell Permanent Establishments (PEs) are a key facet of international taxation. They constitute the crucial threshold for the assignment of taxing rights to a jurisdiction in all cases of enterprises operating in more than one country. The issue of whether there is a PE, and how much profit should be allocated to it, is an increasingly important factor in tax planning, tax accounting, tax compliance, and related tax risk management. This academically rigorous yet thoroughly practical work provides comprehensive guidance on a variety of complex PE issues. Its initial chapters analyse the latest OECD and EU developments in the context of Articles 5 and 7 of the OECD Model Tax Convention (2014 update), the 2015 proposals of the G20/OECD BEPS project (action item 7) and the most recent EU Recommendation on tax treaty abuse of 28 January 2016. 21 country chapters cover domestic PE issues as well as country-specific treaty developments from a practical perspective. Contributors: Fabrizio Acerbis, Gunnar Andersson, Maret Ansperi, Yumiko Arai, Elizabeth Brandt, �kos Burj�n, Peter Collins, Mike Cooper, David Cuellar, Ketan Dalal, Veronika Daurer, Frank Feng, Mikhail Filinov, Sandra Fleurier, Jose Antonio Gonzalez, Herbert Greinecker, S�ren Jesper Hansen, Mauricio Hurtado, Martin Jann, Renaud Jouffroy, Natalia Kuznetsova, David Lermer, Iren Lipre, Anna Mallol, Hamish McElwee, Osman Mollagee, Matthew Mui, Ram�n Mullerat, Luis Felipe Mu�oz, Stephen Nauheim, Francesco Nuzzolo, Yoshiyasu Okada, Marianne Orell, Oren Penn, Martin Poulsen, Emmanuel Raingeard de la Bl�ti�re, Lene Munk Rasmussen, Ekkehart Reimer, Daniel Rinke, Stefan Schmid, Maximilian Schrepfer, Vishal J. Shah, Smit Sheth, Maarten Temmerman, Ibolya T�th, Sofie Van de Perre, Hein Vermeulen, Huili Wang, Sonia Watson, Carl Wattrang, Ciska Wisman, Raymond Wong & Alan Yam.
Author: Ina Kerschner
Publisher: Linde Verlag GmbH
Release Date: 2017-10-04
Time to discuss anti-BEPS measures around digitalization In the course of the BEPS Report on Action 1, it was concluded that there was no instantaneous need for specific rules to address base erosion and profit shifting (BEPS) made possible by the digitalization of enterprises and new digital businesses. At the same time, it was acknowledged that general measures may not suffice with the assessment of results to begin in 2020. While awaiting possible fundamental reforms of the tax framework, it is time to discuss anti-BEPS measures bearing in mind the peculiar features of the digital economy such as increased mobility, no need for physical presence, and dematerialization. The Book focuses on five key areas of interest:International Tax PolicyTax Treaty LawTransfer PricingIndirect Taxation IssuesEU Law “Taxation in a Global Digital Economy” analyses the issues and addresses the five key areas of interest from various viewpoints.
Author: Daniel Blum
Publisher: Linde Verlag GmbH
Release Date: 2016-09-19
Analysis of notion, roots und measures of treaty abuse The OECD initiative on Base Erosion and Profit Shifting has put the issue of treaty abuse and the means to counter it on top of the global political agenda. Preventing treaty abuse is therefore currently one of the most debated topics in international tax law. Diverging national legal traditions in combatting abuse both under domestic and tax treaty law have led to a globally diversified legal framework in this respect and make the OECD’s agenda to harmonize these attempts even more challenging. The aim of this book is to analyze the notion of treaty abuse, its historical roots and the measures to counter it. The book’s topics cover a wide range of both policy and legal issues. The contributions’ main focus lies onanalyzing the proposals put forward by the OECD in BEPS action items 6 and 7. In addition, this book analyzes the lessons which can be learnt from the US tax treaty policy and elaborates on the effects the intensified fight against treaty abuse will have from a Non-OECD member state perspective. Also EU law is taken into account and the question raised which impact the fundamental freedoms might have on the development of new anti-avoidance rules. Finally the relation between domestic and treaty based anti-avoidance is analyzed in great detail, identifying the methodical problems of ensuring a sound and abuse safe legal framework. With this book, the authors and editors hope to contribute to the discussion on selected issues of preventing treaty abuse and the challenges they present to policy makers, judges, tax administrations and tax advisers.
Author: Michael Lang
Publisher: Linde Verlag GmbH
Release Date: 2014-07-04
Dependent Agents as Permanent Establishments The article on business profits may be the most relevant one in tax treaties. If patterned after the OECD Model Tax Convention, this article allocates the exclusive taxing right over the profits of an enterprise to the residence country, unless the enterprise carries on business in the source country through a permanent establishment. Considering the importance of allocating taxation rights, tax authorities and courts of many countries have increasingly focused on the concept of agency permanent establishment. This book includes 12 chapters which provide an in-depth analysis of the key aspects that need to be taken into account for interpreting the concept of agency permanent establishment. It incorporates the perspectives of leading scholars and practitioners dealing with international tax cases. This book is designed to provide essential insights to academics, practitioners, tax officials and judges who deal or are interested in the field of international taxation.
Author: Carlo Garbarino
Publisher: Edward Elgar Publishing
Release Date: 2016-10-28
Judicial Interpretation of Tax Treaties is a detailed analytical guide to the interpretation of tax treaties at the national level. The book focuses on how domestic courts interpret and apply the OECD Commentary to OECD Model Tax Convention on Income and on Capital. Adopting a global perspective, the book gives a systematic presentation of the main interpretive proposals put forward by the OECD Commentary, and analyses selected cases decided in domestic tax systems in order to assess whether and how such solutions are adopted through national judicial process, and indeed which of these are of most practical value. The book operates on two levels: firstly it sets out a clear and comprehensive framework of tax treaty law, which will be an important tool for any tax practitioner. Secondly, the book provides crucial guidance on issues of tax treaty law as applied at domestic level, such as investment or business income, dispute resolution and administrative cooperation.
Author: Michael Lang
Publisher: Linde Verlag GmbH
Release Date: 2015-01-27
Changes and effects on international tax planning The 2014 Update of the OECD Model Convention in particular addresses issues regarding beneficial ownership, treatment of termination payments, changes to the exchange of information provision and questions arising in the context to emissions permits and credits. This book includes 11 chapters which analyze the changes made by the Update and assess their effects on international tax planning. Moreover, the book offers a future outlook of the concept of permanent establishment in the context of the BEPS project. It incorporates the perspective of leading scholars and practitioners dealing with international tax cases. This book is designed to provide essential insights to academics, practitioners, tax officials and judges who deal or are interested in the field of international taxation.
Author: Eduardo Baistrocchi
Publisher: Cambridge University Press
Release Date: 2017-08-17
This two-volume set offers an in-depth analysis of the leading tax treaty disputes in the G20 and beyond within the first century of international tax law. Including country-by-country and thematic analyses, the study is structured around a novel global taxonomy of tax treaty disputes and includes an unprecedented dataset with over 1500 leading tax treaty cases. By adopting a contextual approach the local expertise of the contributors allows for a thorough and transparent analysis. This set is an important reference tool for anyone implementing or studying international tax regulations and will facilitate the work of courts, tax administrations and practitioners around the world. It is designed to complement model conventions such as the OECD Model Tax Convention on Income and on Capital. Together with Resolving Transfer Pricing Disputes (2012), it is a comprehensive addition to current debate on the international tax law regime.
The dramatic advances in communications and technology that have taken place in recent years, combined with the progressive development of the Indian economy, have enticed many multi-national companies to tap the rich resources which India has to offer in terms of front-line business support services and customer relations. This has thrust the Indian tax system into the limelight, with multi-nationals and their advisers now needing to become familiar with the relevant aspects of Indian tax law and practice, and in particular, how India approaches the concept of permanent establishment and the circumstances in which a liability to tax in India could arise. This book's principal theme is the taxation of permanent establishments, taking as its starting point the OECD (Organisation for Economic Co-operation and Development) model convention on the avoidance of double taxation, and examining how the Indian courts and India's law-makers have interpreted the rules governing attribution of profits. The book examines the current issues to which the establishment of business centers in India by multi-nationals have given rise, relating how the law is developing to take account of these latest international business trends.
Author: Andreas Waltrich
Publisher: Series on International Taxati
Release Date: 2016
Introduction -- Fundamentals and objective -- Source taxation of business profits according to the OECD model -- Source taxation of business profits from a national point of view of Germany, the US and the BRIC states -- Cross-country analysis of the OECD and national PE concepts and the rules on the attribution of business income -- Reform proposals with regard to the PE definition and the attribution of business profits -- Final conclusion in the form of theses
Author: Catherine A. Brown
Release Date: 2017-05-17
This book argues that the proliferation of global trade and the increasing power of free trade arrangements leave income taxes as one of the few remaining measures that can potentially be used for protectionist purposes. It analyzes the interaction between the non-discrimination principles in tax treaties and trade-related agreements including multilateral (WTO), regional (NAFTA, AANZTA) and bilateral free trade agreements. The absence of a non-discrimination obligation with respect to tax measures that apply to non-resident service providers and to non-resident services may, therefore, significantly undermine trade obligations. The book clearly reveals how these tax barriers to trade may unfairly or unnecessarily restrict trade in services, and puts forward a new, more effective non-discrimination obligation in tax matters to be included in tax treaties, one that would more closely parallel the non-discrimination obligations in trade agreements. The book examines the concept of non-discrimination in tax matters from several perspectives, specifically a North American and Australian perspective, as well as a perspective based on EU (and UK) law, focusing on the interaction between these legal systems, bilateral tax treaties, regional trade agreements and, where relevant, the General Agreement on Trade in Services (GATS). The book explores the possibility of a reciprocal influence between tax treaties and trade agreements, and poses the question as to whether tax treaties might do more in providing a non-discrimination principle in the cross-border trade in services.
Author: Organisation for Economic Co-Operation and Development
Publisher: Organization for Economic
Release Date: 2009-11
It has long been recognised among OECD members that it is desirable to clarify, standardise and confirm the fiscal situation of taxpayers who are engaged in commercial, industrial, financial or other activities in other countries through the application of common solutions to identical cases of double taxation. The OECD "Model tax convention on income and on capital" provides a means of settling on a uniform basis the most common problems that arise in the field of international juridical double taxation.