Tag: Dependent agent

The term “dependent agent” is a treaty concept which refers to a person who acts on behalf of another person. The concept of dependent agent is important in determining whether a nonresident person has a permanent establishment in a country.

Spain vs. Dell, June 2016, Supreme Court, Case No. 1475/2016

Spain vs. Dell, June 2016, Supreme Court, Case No. 1475/2016

Dell Spain is part of a multinational group (Dell) that manufactures and sells computers. Dell Ireland, operates as distributor for most of Europe. Dell Ireland has appointed related entities to operate as its commissionaires in several countries; Dell Spain and Dell France are part of this commissionaire network. The Dell Group operates through a direct sales model. Purchase orders are placed on a web page or in a call centre. Dell Spain operated as a full-fledged distributor. After the restructuring, Dell Spain serves large customers of the group, through a commissionaire agreement with Dell Ireland. In many cases, large customers require specialized services and Dell Spain’s client support personnel serves them. Sales to private customers in Spain are conducted by Dell France, through a call centre and a web page. The Supreme Court concludes that the activities of Dell Spain constitutes a PE of Dell Ireland under both the “dependent agent” and “fixed place of business” clauses of the treaty. The Supreme Court concludes that the expression “acting on ... Continue to full case