2012 Fiscal Year Final Research Report
taxation theory on agent PE's income attributable to a member of multi-national enterprise group
| Project/Area Number |
22530024
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public law
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| Research Institution | Waseda University (2012)
University of Tsukuba (2010-2011) |
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Principal Investigator |
AOYAMA Keiji 早稲田大学, 商学学術院, 教授 (50431664)
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| Project Period (FY) |
2010 – 2012
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| Keywords | 租税法 / 国際税法 |
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| Research Abstract |
First task of this project is to collect basic information on legislative history of agent PE principle. OECD model Convention provides with a lot of leading guidance on how to apply it, however, it was found that agent PE seems to be a supplementary tool to transfer pricing in addressing aggressive cross-border tax plannings.
In identifying judicial issues on taxability of MNEs' intra-group transactions from the perspective of source countries, both approaches of OECD model conventions and UN model conventions were analyzed. While the former focuses on the balance of jurisdictions in residence states and source states, the latter puts its priority on source states. According to recent developments in both organizations、OECD emphasizes on predictability of identified agent PE in order to avoid double taxation, while UN’s discussion focuses on possibility of increased coverage of PE concept.
Then, discussions on this topic organized by academics(International Fiscal Associations) were researched, in addition to screening and evaluation of valuable relevant court cases world-wide. Hearing from Japanese MNEs also provides with dispute resolution procedures concerning PE taxations by some Asian countries.
As a result, researches listed above suggests that under the UN Model it seems difficult to arrive at concerted interpretation of agent PE concept, however, that under the OECD model it seems possible to reach certain consensus on that interpretation. Under the UN model, taxation on services and intangibles should be discussed simultaneously in order to reach balanced solutions.
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