Download or read book OECD Guidance Doesn t Resolve Fundamental Issue for Attribution of Profits to Permanent Establishment written by R.B. Stack and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The OECD's recent guidance on how to attribute profits to a permanent establishment (PE) leaves unresolved a critical question for multinational companies worldwide - how to harmonize the application of articles 7 and 9 of the OECD's Model Tax Convention (MTC) to a multinational group's legal structure. The OECD on 22 March 2018 released additional guidance on the attribution of profits to a PE under Action 7 of the base erosion and profit shifting (BEPS) project. This latest guidance was preceded by two discussion drafts, one issued in July 2016 and the other in June 2017. The 2018 guidance sets out high-level general principles in light of the comments received on the earlier drafts, but doesn't address the most challenging issue - rationalizing the application of articles 7 and 9 to the same legal structure. Article 7 - the business profits article - outlines the profit attribution rules for PEs, and article 9 - the associated enterprises article - incorporates the arm's-length standard, the bedrock principle of transfer pricing. Without affirmatively reaching consensus that the article 9 analysis precedes the article 7 analysis (or vice versa), and without harmonizing the significant people functions (SPF) analysis under article 7 with the risk control framework under article 9, Working Party No. 6 in the 22 March guidance leaves unresolved the fundamental issue that the working party set out to address post-BEPS.
Download or read book Attribution of Profits to Permanent Establishments written by Michael Lang and published by Linde Verlag GmbH. This book was released on 2020-04-08 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: Attribution of Profits to Permanent Establishments: Issues and Developments The profit attribution to permanent establishments is one of the most controversial topics in international tax law. In recent years it was subject to various changes based on the introduction of the “Authorized OECD Approach” in 2008 and 2010, the outcomes of Final Report on OECD BEPS Action 7 and the Final Report on “Additional Guidance on the Attribution of Profits to a Permanent Establishment under BEPS Action 7” from 2018 (with the previous Discussion-Drafts). This publication discusses the most important issues and recent developments related to the attribution of profits to permanent establishments. Starting with an in-depth analysis on the commonalities and differences between the profit attribution provisions in modern double tax treaties (ie Art 7 AOA vs Art 9 OECD/UN Models), it further deals with topics such as profit attribution to PEs and PE exemptions (Art 5 para 4), profit attribution to agency PEs (Art 5 para 5 and 6), and profit attribution to a "significant economic presence" and to market states. This book is based on the outcomes of the presentations and discussions held during the WU Transfer Pricing Symposium that took place in October 2019 at the WU Vienna University of Economics and Business. The authors, apart from providing a theoretical background to the discussed issues, also present case studies that show how certain issues can be approached in practice. Every chapter ends with a summary of the opinions on the issues at stake of representatives of tax administrations, multinationals and tax advisories, which completes this essential practical guideline.
Download or read book Attribution of Profits to Permanent Establishments written by Michael Lang and published by Linde Verlag GmbH. This book was released on 2020-04-08 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: Attribution of Profits to Permanent Establishments: Issues and Developments The profit attribution to permanent establishments is one of the most controversial topics in international tax law. In recent years it was subject to various changes based on the introduction of the “Authorized OECD Approach” in 2008 and 2010, the outcomes of Final Report on OECD BEPS Action 7 and the Final Report on “Additional Guidance on the Attribution of Profits to a Permanent Establishment under BEPS Action 7” from 2018 (with the previous Discussion-Drafts). This publication discusses the most important issues and recent developments related to the attribution of profits to permanent establishments. Starting with an in-depth analysis on the commonalities and differences between the profit attribution provisions in modern double tax treaties (ie Art 7 AOA vs Art 9 OECD/UN Models), it further deals with topics such as profit attribution to PEs and PE exemptions (Art 5 para 4), profit attribution to agency PEs (Art 5 para 5 and 6), and profit attribution to a "significant economic presence" and to market states. This book is based on the outcomes of the presentations and discussions held during the WU Transfer Pricing Symposium that took place in October 2019 at the WU Vienna University of Economics and Business. The authors, apart from providing a theoretical background to the discussed issues, also present case studies that show how certain issues can be approached in practice. Every chapter ends with a summary of the opinions on the issues at stake of representatives of tax administrations, multinationals and tax advisories, which completes this essential practical guideline.
Download or read book The Concept of Permanent Establishment in the Insurance Business written by Daniele Frescurato and published by Kluwer Law International B.V.. This book was released on 2021-04-22 with total page 430 pages. Available in PDF, EPUB and Kindle. Book excerpt: siness models adopted by insurance companies; and comparative analysis of double tax treaty policies adopted in a number of countries with respect to the permanent establishment provision in the insurance business, highlighting Switzerland for comparative purposes. In a concluding chapter, the author proposes changes to the definition of the dependent agent permanent establishment currently enshrined in the model treaties and their respective commentaries, aligning such a definition to the regulatory framework in which insurance companies conduct their business in countries other than that of incorporation. As a highly significant and timely contribution to the study of the interplay between insurance regulation and tax implications, this very original work will prove of especial value to practitioners in international tax and insurance law, as well as professionals in the financial services sector and tax academics.
Download or read book The Attribution of Profits to Permanent Establishments written by Raffaele Russo and published by IBFD. This book was released on 2005 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The attribution of profits to permanent establishments (PEs) is probably one of the most complex subjects of the international tax arena. The interaction of treaty rules and domestic legislations sometimes leads to unacceptable results such as double taxation or double non-taxation. This book compares the tax treatment of cross-border dealings between different parts of the same enterprise in several countries."--Extracted from publisher website on June 29, 2016
Download or read book Attribution of Profits to Permanent Establishments in the OECD View written by Thomas Eulenpesch and published by GRIN Verlag. This book was released on 2012-09-06 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2012 in the subject Business economics - Accounting and Taxes, Rhine-Waal University of Applied Sciences, language: English, abstract: In my scientific writing I will write about the attribution of profits to Permanent Establishments in accordance with the updated OECD Model Tax Convention and the OECD Report on the attribution of profits to Permanent Establishments in the Versions of 2008 and 2010. First I will start with the definition of the Permanent Establishment in the German law and according to the OECD Model Tax Convention. Afterwards I will continue with the allocation of Profits to the Permanent Establishment by the two step analysis and the different transfer price methods. Additionally I will write about the hypothetical independent enterprises and special regulations for Banks, the trading of financial instruments and Insurance companies.
Download or read book Profit Attribution to Permanent Establishments a Tax Treaty Perspective on the single Taxpayer Approach written by S.B. Law and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this article, the author provides a tax treaty perspective on the OECD's Additional Guidance on the Attribution of Profits to Permanent Establishments, Action 7 - 2017 Public Discussion Draft, observing that countries which continue to follow article 7 of the pre-2010 OECD Model and the current UN Model would likely not accept the "single taxpayer" approach of attributing zero or minimal profits to a permanent establishment.
Download or read book Attribution of Profits to Permanent Establishments written by Organisation for Economic Co-operation and Development and published by . This book was released on 2001 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: Currently, there is a lack of consensus amongst OECD Member countries as to how profits should be attributed to a permanent establishment (PE). As a first step in remedying this situation a working hypothesis has been developed as to the preferred approach for attributing profits to the PE. The basis for the working hypothesis is to examine how far the approach of treating the PE as a hypothetical distinct and separate enterprise can be taken and how the guidance in the OECD Transfer Pricing Guidelines could be applied, by analogy, to attribute profits to a PE. This discussion draft contains the results of testing the working hypothesis in general (Part I) and to PEs of banks (Part II). Public comments are invited in order to assist in the development of an OECD consensus on the attribution of profits to a PE.
Download or read book Five Core Problems in the Attribution of Profits to Permanent Establishments written by R.S. Collier and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The rules regulating the attribution of profit to permanent establishments (PEs) are a fundamental feature of the existing international tax system yet are beset by a multitude of problems. This article identifies five "core" problems with these rules: (1) the absence of a single standard for PE profit attribution; (2) conceptual and practical problems arising in the application of the Authorised OECD Approach (AOA); (3) new pressures arising as a result of the changes made to the PE threshold rules by the BEPS Project; (4) the failure to deal with the uncertainties between the transfer pricing rules and the PE attribution rules in the aftermath of BEPS; and (5) a raft of new challenges arising from the work on the digitalization of the economy. To a large degree, these issues are symptomatic of the problems faced by the international tax system as a whole. This article analyses the source, nature and impact of these core problems, before concluding with some brief thoughts on potential solutions.
Download or read book Additional Guidance on the Attribution of Profits to Permanent Establishments a Welcome Development written by G.D. Sprague and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This article examines the OECD's July 2016 discussion draft on attributing profits to permanent establishments (PEs), highlighting issues that it raises regarding deemed PEs created through selling activities.
Download or read book OECD Discussion Draft Additional Guidance on the Attribution of Profits to Permanent Establishments written by J.L. Andrus and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This current note discusses the latest version of OECD's Public Discussion Draft, base erosion and profit shifting (BEPS) Action 7, Additional Guidance on Attribution of Profits to Permanent Establisments (released on 22 June 2017), including the changes and differences with regard to the earlier version (July 2016). It also describes concerns arising from the BEPS Project.
Download or read book OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022 written by OECD and published by OECD Publishing. This book was released on 2022-01-20 with total page 658 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a global economy where multinational enterprises (MNEs) play a prominent role, governments need to ensure that the taxable profits of MNEs are not artificially shifted out of their jurisdiction and that the tax base reported by MNEs in their country reflects the economic activity undertaken therein. For taxpayers, it is essential to limit the risks of economic double taxation.
Download or read book The Effect of the OECD G20 BEPS Initiative on the Attribution of Profits to Permanent Establishments the Special Case of Agency Permanent Establishments written by D. Tracana and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this article, the author examines the effects of the OECD/G20 Base Erosion and Profit Shifting (BEPS) initiative on the attribution of profits to agency permanent establishments, focusing on the OECD's Additional Guidance on the Attribution of Profits to Permanent Establishments, Action 7 - 2016 Public Discussion Draft.
Download or read book OECD G20 Base Erosion and Profit Shifting Project Tax Challenges Arising from Digitalisation Interim Report 2018 Inclusive Framework on BEPS written by OECD and published by OECD Publishing. This book was released on 2018-03-16 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: This interim report of the OECD/G20 Inclusive Framework on BEPS is a follow-up to the work delivered in 2015 under Action 1 of the BEPS Project on addressing the tax challenges of the digital economy.
Download or read book Model Tax Convention Attribution of Income to Permanent Establishments written by and published by . This book was released on 1994 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Status of the OECD Transfer Pricing Guidelines in the Post BEPS Dynamics written by M. Kobetsky and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite the vast literature on the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (OECD Guidelines), its status has received little consideration. The image in the literature is that the OECD Guidelines is a significant publication, given the substantial cross-border trade between associated enterprises. In the OECD/G20 BEPS Project, the Final Report on Actions 8-10, published in 2015, revised the OECD Guidelines as part of the sweeping measures to counter aggressive tax avoidance by certain multinational enterprises (MNEs), such as Google LLC, Facebook Inc. and Apple Inc. BEPS Actions 8-10, inter alia, revised the guidance on intangibles and cost contribution arrangements to prevent profits from intangibles being allocated to low-tax jurisdictions. As anticipated, the OECD has reported that transfer pricing disputes are rising. In particular, BEPS Action 14, on dispute resolution, requires tax treaties to include article 9(2) of the OECD Model Tax Convention, on corresponding transfer pricing adjustments, in tax treaties. Moreover, BEPS Action 14 (element 1.1 of the minimum standard) requires that access to the mutual agreement procedure be available for transfer pricing cases in tax treaties and that countries implement the resulting mutual agreements. As a minimum standard, members of the Inclusive Framework are obliged to implement this measure, which further elevates the status of the OECD Guidelines, as resulting disputes will be resolved on the basis of the principles in the OECD Guidelines. The membership of the Inclusive Framework exceeds 135 countries. As there is a dearth of transfer pricing case law, the consequence is that courts have only established limited jurisprudence on the topic. One Australian transfer pricing case concluded that the OECD Guidelines had no formal status in treaty interpretation. It is asserted in this article that the OECD Guidelines is part of the Commentary accompanying the OECD Model Convention on Income and on Capital. Even so, it is argued that treaty countries should not only use the OECD Guidelines as a guidance document in their domestic rules, but expressly state in their tax treaties that the OECD Guidelines are to be used for the interpretation of the associated enterprises article. In addition, the treaty statement should specify whether the static or ambulatory approach should be applied.This article asserts that the best way forward is for the OECD to illuminate the status of the OECD Guidelines by including a clear statement in the Commentary on the intrinsic character of the OECD Guidelines and expressly identify which parts of the OECD Guidelines form part of the Commentary, adapting the approach taken in the Commentary on the business profits article incorporating the 2010 Report on the Attribution of Permanent Establishments.
Download or read book Risk Assumption Under the Authorised OECD Approach and the 2017 OECD Transfer Pricing Guidelines written by S. De Baets and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: On March 22nd, 2018, the OECD published Additional Guidance on the Attribution of Profits to Permanent Establishments (the Guidance). The publication of this Guidance finds its origin in the BEPS Action 7 report, published on October 5th, 2015. First, this article identifies the issues with regard to risk as well as the discussion in the Guidance. After a brief discussion of the Guidance on risk under the 2017 OECD TPG and the main principles of the Authorised OECD Approach (AOA; including the significant people functions (SPF) relevant to the assumption/attribution of risk), the similarities and divergences with regard to risk between the two sets of guidance (AOA and OECD TPG) are discussed.
