Research team

Business and Law

Permanent Establishment in a Charging World. An Eroded Tax Treaty Principle. The Allocation of Taxing Jurisdiction with respect to Business Profits. 01/10/2002 - 30/09/2004

Abstract

In international tax law the concept 'permanent establishment' is used to determine the authority of a certain state (i.e. the source state) to impose taxes on the profits gained by a foreign enterprise on her territory. This concept, developed at the end of the 19th century, presumes a sufficient material substance and economical alliance with the territory on which the activities take place. The purpose of this thesis is to examine whether the 'permanent establishment' concept is still an adequate instrument to allocate cross border profits to the source state. Indeed, due to several evolutions enterprises are no longer physically c.q. permanently present on the territory of the state where the proper activities take place. In this context reference can be made to the recent developments with respect to technology and communication (internet and electronic commerce), the increasing multi-national performance of activities, the evolution from a national to a global economy (global trading) and other developments often inspired by fiscal considerations.

Researcher(s)

Research team(s)

Permanent Establishments in International Tax Law 01/10/2000 - 30/09/2002

Abstract

In international tax law the concept 'permanent establishment' is used to determine the authority of a certain state (i.e. the source state) to impose taxes on the profits gained by a foreign enterprise on her territory. This concept, developed at the end of the 19th century, presumes a sufficient material substance and economical alliance with the territory on which the activities take place. The purpose of this thesis is to examine whether the 'permanent establishment' concept is still an adequate instrument to allocate cross border profits to the source state. Indeed, due to several evolutions enterprises are no longer physically c.q. permanently present on the territory of the state where the proper activities take place. In this context reference can be made to the recent developments with respect to technology and communication (internet and electronic commerce), the increasing multi-national performance of activities, the evolution from a national to a global economy (global trading) and other developments often inspired by fiscal considerations.

Researcher(s)

Research team(s)