The Technical Advisory Group on monitoring the application of existing tax treaty norms for the taxation of business profits („TAG") headed by the OECD Committee of Fiscal Affairs („CFA") recently released a discussion draft entitled „Place of effective management concept: suggestions for changes to the OECD Model Tax Convention". The TAG has developed two alternative proposals: The first proposal seeks to refine the concept of the „place of effective mangement" by expanding the Commentary on the OECD Model Tax Convention (OECD MTC). The second proposal („Hierarchy of Tests") puts forward a tie-breaker rule for persons other than individuals in an alternative version of Art. 4 para. 3 of the OECD MTC. Stefan Bendlinger analyses the two proposals from the perspective of the business community.