Controversial Case: German Storage Locker Found to be Used as a Place of Business for Tax Purposes

A storage locker has caught headlines in the tax world this week after it was found to be used as a fixed place of business for double tax treaty (DTT) and economic substance purposes. The locker contained instruments and comprised a legitimate fixed spot of business. Germany's government Supreme Tax Court heard about the case of the civil aircraft engineer who lived and worked mostly in the UK.

The court chose that a basic right to utilise a room did not itself establish the presence of a fixed base, however the engineers use of a sole storage locker in a German airport terminal showed an association between the company and where company operations were being carried out.