A Note on the Zimmer Case and the Concept of Permanent Establishment

Tax Treaty Case Law around the Globe, p. 107, 2011

6 Pages Posted: 7 Jun 2012 Last revised: 9 Jun 2015

See all articles by J. Clifton Fleming

J. Clifton Fleming

Brigham Young University - J. Reuben Clark Law School

Date Written: 2011

Abstract

This paper argues that under Article 5(5) of the OECD Model Convention on Income and on Capital, foreign sellers are free to avoid permanent establishments in all source countries, regardless of whether a particular source country's law includes the commissionaire concept, by selling through source country dependent agents that lack authority to enter into contracts that legally bind the foreign seller. This means that a foreign seller is substantially free to elect whether or not to have a permanent establishment in a source country.

Keywords: permanent establishment, international taxation, source taxation, tax treaties

Suggested Citation

Fleming, J. Clifton, A Note on the Zimmer Case and the Concept of Permanent Establishment (2011). Tax Treaty Case Law around the Globe, p. 107, 2011. Available at SSRN: https://ssrn.com/abstract=2079317

J. Clifton Fleming (Contact Author)

Brigham Young University - J. Reuben Clark Law School ( email )

430 JRCB
Brigham Young University
Provo, UT 84602
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
550
Abstract Views
2,398
rank
49,545
PlumX Metrics