All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Marlies de Ruiter

Head of the OECD's Tax Treaty, Transfer Pricing and Financial Transactions division

Marlies de Ruiter

Marlies de Ruiter has been nominated this year for her work connected to the OECD’s Revised Proposals on Article 5 (permanent establishment) of the OECD Model Tax Convention, as head of the Tax Treaties, Transfer Pricing and Financial Transactions Division.

The interpretation of PE is evolving as business adapts to a more global environment. Technological advancements, more tax treaties and the realities of business transactions mean the definition of PE is changing.

The OECD does not think the guidelines cater for the way companies and government now define PE.

Based on the current draft, however, some concerns are still being raised.

Queries have been raised over the mention in the draft of “space at the disposal of”, because the notion of “having the power to use” a location is difficult to apply, if, as suggested during the OECD consultation meeting, it means something less than a legal right to use a location.

“While the first example given by the OECD, at proposed paragraph 4.2 (exclusive legal right to use or legal possession), is quite straightforward, the second one, which deals with an enterprise being “allowed to use” a location where it performs its business activities on a continuous basis during an extended period of time, is not nearly as limpid,” says Francois Vincent of KPMG in France.

“More specifically, it becomes difficult to delineate how being allowed to use space is equal to having the power to use that space; unless “being allowed” means being conferred the power to use that space, under something like a formal authorisation - which may come pretty close to a legal right to use - rather than passive acceptance of the use of space; which was part of the original concern expressed by BIAC that led to the recommendation to replace existing paragraph 4.2,” Vincent adds.

In June 2013, the OECD Committee on Fiscal Affairs released for public comment a discussion draft on the tax treatment of various payments that may be made following the termination of an employment, as part of the changes to permanent establishment. These comments have now been posted online and are being considered by de Ruiter and her team.

The Global Tax 50 2013

« Previous

Tim Cook and Eric Schmidt

View the complete list

Next »

Tara Ferris

more across site & bottom lb ros

More from across our site

This week Switzerland opens consultation on draft legislation to implement the OECD’s global minimum tax rate, while Germany cuts VAT amid the highest inflation rate in decades.
ITR looks into the biggest transfer pricing cases in 2022 including multinational companies McDonald’s, BlackRock, and Rio Tinto.
TP technical leader at ‘big four’ firm KPMG Philip Roper talks to senior reporter Leanna Reeves about how businesses can mitigate the transfer pricing impact of higher interest rates in the UK.
Vikas Garg talks to reporter Siqalane Taho about how regulation, technology and the goods and services tax has affected the manufacturing company.
A major shift is underway in tax as the profession transitions from a mostly accounting and finance sector to a hybrid industry that requires significant IT skills, say tax experts.
The Biden administration is about to give $80 billion to the Internal Revenue Service to enhance the tax authority’s enforcement processes and IT systems.
Audi, Porsche, and Kia say their US clients will face higher prices under the Inflation Reduction Act after the legislation axes an important tax credit for electric vehicle production.
This week Brazil’s former President Luiz Inacio Lula da Silva came out in support of uniting Brazil’s consumption taxes into one VAT regime, while the US Senate approved a corporate minimum tax rate.
The Dutch TP decree marks a turn in the Netherlands as the country aligns its tax policies with OECD standards over claims it is a tax haven.
Gorka Echevarria talks to reporter Siqalane Taho about how inflation, e-invoicing and technology are affecting the laser printing firm in a post-COVID world.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree