Norway: Supreme Court rules that a Commissionaire company is not a PE of the principal company
01 February 2012
On December 2 2011 Norway's Supreme Court found in favour of Dell that its Norwegian commissionaire company did not constitute a sales agency permanent establishment (PE) of the group's Irish principal company.
This is a final judgement and cannot be appealed by the Norwegian Tax Authorities (NTA). The judgement overturned the previous ruling of the Court of Appeal that found in favour of the NTA, and is now consistent with the earlier decision of the French Supreme Court in the Zimmer case.
Background facts
Dell AS was established as a commissionaire company to market and sell the Dell group's products in Norway under its own name, but for the risk and account of a Dutch incorporated and Irish tax resident principal company, Dell Products (Europe) BV (Dell Products). Such sales were not legally binding from Dell Products to Dell AS' customers. Dell AS received commission income from Dell Products and was taxed in Norway. Dell Products had not registered for tax in Norway.
The NTA assessed that Dell AS constituted a PE of Dell Products under Article 5(5) of the Norway-Ireland 2000...
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