Attribution of Profits to Permanent Establishments
1. Aufl. 2020
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S. 47Art 7 AOA vs Art 9 OECD/UN Models – Panel Discussion
The question ‘What is identical, what is different post-BEPS?’ linked to the two articles was aiming to deal with the following four issues:
How did the BEPS Project effect the two articles?
What are the differences in scope: Transactions vs Dealings?
Definition of ‘significant people functions’ vs ‘significant functions’ – What needs to be done to harmonize?
Does Art 7 AOA not properly consider the ‘demand’ side?
Tax authorities 1: The starting point of the AOA discussions was the mid-1990s just after the 1995 OECD TPG, and people were ‘fascinated’ with what could be achieved with a deemed functional separate entity approach. In all of the discussions and criticisms of the AOA, we do not have to forget this starting point. We had, at that time, a commentary that was a kind of mixture of different approaches some of which were conceptionally more related to allocating profits while others were more related to the separate entity approach. The idea, therefore, was to get a kind of uniform and clear principle in the commentary. For example, there was the idea to only allocate the costs and revenues to a PE and have no profit el...