Permanent Establishment: when is business carried on?

This article discusses questions relating to corporate residence and article 4(1) of the UK-US Double Tax Treaty raised in GE Financial Investments v HMRC  [2021] UKFTT 210 (TC).

The question in this case was if a US partnership that was established in the UK, (also) had an establishment in the USA. The partnership argued that it had sufficient activities and precense in the USA, and that (therefore) it paid tax on it’s income in the USA, instead of in the UK.

It’s a Corprate Tax discussion, but also interesting for indirect tax, because the arguments used by the UK tax authorities (HMRC) give insight on their view of ‘place of business’, and the “degree of activity that is needed to constitute “business”.

Source Kluwertaxblog



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