Attribution of Profits to Permanent Establishments
1. Aufl. 2020
Besitzen Sie diesen Inhalt bereits,
melden Sie sich an.
oder schalten Sie Ihr Produkt zur digitalen Nutzung frei.
S. 139Profit Attribution to Agency PEs (Art 5 para 5 and 6) – Panel Discussion
The case study that served as the base for the discussions below provided for a trading company (TradeCo) in Country R and a subsidiary in Country S (SellCo). SellCo provides distribution services based upon the functional and risk profile of a commissionaire and receives a commission fee as remuneration (in form of a percentage amount based upon the sales made by SellCo on behalf of TradeCo in Country S). It is assumed that TradeCo has a PE in Country S.
This question was aiming to deal with the pre-AOA approach on profit attribution.
What would be the solution to the case if both countries have not implemented the AOA?
Would the solution change if paragraph 7(2) or 7(4) is applied?
Would the solution change in the case of losses realized by TradeCo?
Advisor 1: India says it does not agree with the AOA. So, if we leave the AOA aside, I think all of us need to be aware that, way before the OECD developed the AOA, the Australian tax office, for example, provided guidelines way back in 2007 for profit attribution to PEs. If we consider what the concept is of an agency PE, being it a commissionaire or not, th...