The agency permanent establishment in BEPS action 7:: treaty abuse or business abuse?

• Autores: Arthur Pleijisier
• Localización: Intertax, ISSN 0165-2826, Vol. 43, Nº. 2, 2015, págs. 147-154
• Idioma: inglés
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• Resumen

  • The author analysis the four proposals made by the BEPS Focus Group on action number 7: preventing the artificial avoidance of PE status. He demonstrates that some of the proposals are not workable and are not in line with the core of the Agency PE provision, namely the legal framework of agency. The proposal regarding the independent agency provision is analysed with reference to the wording of this provision. The article focusses on the possible impact of these proposals for multinational companies. Commissionaire structures and limited risk distributors (LRDs) are used by many companies and the possible impact of the recommended changes on these structures are discussed.

    The author concludes the article by proposing his recommended Agency PE provision aiming to support the objectives of the BEPS Focus Group but also to come up with a provision which would not disturb business too much.