CORPORATE TAXATION: OECD meets again regarding permanent establishment

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A permanent establishment (PE) is a fixed place of business which generally gives rise to income or value added tax liabilities in a particular jurisdiction.
The OECD’s Base Erosion and Profit Shifting working group has issued a revised discussion draft on international corporations’ tactics to avoid permanent establishment status.

Towards the end of last year, the OECD released the first draft of a discussion regarding a number of PE evasion tactics being used and a number of suggestions in an attempt to combat them. Based on the comments from the discussion, the meeting was held at a public consultation on January 21st 2015, and the options included in the first discussion draft were reviewed in order to produce a specific preferred proposal with respect to each PE avoidance strategy.