International Taxation of Permanent Establishments Principles and Policy [Hardcover]

This book analyses the principles for attributing profits to branches of multinational enterprises for tax purposes under the OECD Model Tax Convention.The tax treaties of OECD countries and many non-OECD countries are based on the OECD model. Michael Kobetsky analyses the principles for allocating the profits of multinational enterprises to permanent establishments under the business profits article (Article 7) of the OECD Model Tax Convention.The tax treaties of OECD countries and many non-OECD countries are based on the OECD model. Michael Kobetsky analyses the principles for allocating the profits of multinational enterprises to permanent establishments under the business profits article (Article 7) of the OECD Model Tax Convention.The effects of the growth of multinational enterprises and globalization in the past fifty years have been profound, and many multinational enterprises, such as international banks, now operate around the world through branches known as permanent establishments. The business profits article (Article 7) of the OECD model tax treaty attributes a multinational enterprise's business profits to a permanent establishment in a host country for tax purposes. Michael Kobetsky analyses the principles for allocating the profits of multinational enterprises to permanent establishments under this article, explains the shortcomings of the current arm's length principle for attributing business profits to permanent establishments and considers the alternative method of formulary apportionment for allocating business profits.1. Introduction; 2. International tax: policy and law; 3. Some shortcomings of the tax treaty system; 4. History of tax treaties and the permanent establishment concept; 5. The role of the OECD model and commentary; 6. Defining the personality of permanent establishments under Article 7 and the pre-2008 commentary and 2008 commentary; 7. Intra-bank interest under the pre-2008 commentary and 1984 report; 8. Intra-bank interest undlÃs