Tag: Fixed place of business

Italy vs Dolce & Gabbana, December 2018, Supreme Court, Case no 33234/2018

Italy vs Dolce & Gabbana, December 2018, Supreme Court, Case no 33234/2018

In this case the Italian fashion group, Dolce & Gabbana, had moved ownership of valuable intangibles to a subsidiary established for that purpose in Luxembourg. The Italian Revenue Agency found the arrangement to be wholly artificial and set up only to avoid Italien taxes and to benefit from the privileged tax treatment in Luxembourg. The Revenue Agency argued that all decision related to the intangibles was in fact taken at the Italian headquarters of Dolce & Gabbana in Milan, and not in Luxembourg, where there were no administrative structure and only one employee with mere secretarial duties. Dolce & Gobbana disargeed with these findings and brought the case to court. In the first and second instance the courts ruled in favor of the Italian Revenue Agency, but the Italian Supreme Court ruled in favor of Dolce & Gabbana. According to the Supreme Court, the fact that a company is established in another EU Member State to benefit from more advantageous ... Continue to full case
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
South Africa vs. AB LLC and BD Holdings LLC, May 2015, Tax Court, Case No: 13276

South Africa vs. AB LLC and BD Holdings LLC, May 2015, Tax Court, Case No: 13276

US companies, AB LLC and BD Holdings LLC, came to South Africa in 2007 to perform certain services for X, a company based in and operating from South Africa. To perform these services they concluded a contract with X. There only purpose for coming to South Africa was to perform the services and earn income or profits in terms of the contract. Having achieved this objective they left the country in 2008. Furthermore in 2009 they recieved a succes bonus for the work performed in 2007 and 2008. On 14 June 2011 they were assessed for taxation purposes for the 2007, 2008 and 2009 years by the Revenue Service. The total taxable amount for these years, although only earned during the period February 2007 to May 2008, according to the respondent, was R 63.990.639. The assessment was based on the provisions of Articles 7(1), 5(1) and 5(2)(k) of the DTA. According to these assessments the US companies were liable for ... Continue to full case
Spain vs. Borex, February 2011, National Court case nr. 80-2008

Spain vs. Borex, February 2011, National Court case nr. 80-2008

A Spanish subsidiary of a UK Group (Borex), which imported, processed and sold the materials to third parties, was transformed into a a contract manufacturer. The Spanish subsidiary signed two separate contracts with the UK parent, one for warehousing and the provision of services and the other in respect of an sales agency. Under the first contract, the minerals purchased by the parent would be stored and processed by the subsidiary, which would also provide other relevant services. Under the second contract, the Spanish subsidiary would promote sales of the minerals in Spain, but, as the prices and conditions were fixed by the UK parent, the subsidiary would only send orders to the parent, which was not bound to accept them. The subsidiary could not accept orders in the name of the parent or receive payment. The tax administration argued that there was a high degree of overlapping between the activities carried out by the parent and the subsidiary. Warehousing, service and promotion of ... Continue to full case
France vs. Zimmer Ltd., March 2010, Conseil D'Etat No. 304715, 308525

France vs. Zimmer Ltd., March 2010, Conseil D’Etat No. 304715, 308525

The French company, Zimmer SAS, distributed products for Zimmer Limited. In 1995 the company was converted into a commissionaire (acting in its own name but on behalf of Zimmer Ltd.). The French tax authorities argued that the commissionaire was taxable as a permanent establishment of the principal, because the commissionaire could bind the principal. The Court ruled that the commissionaire could not bind the principal. Therefore, the French commissionaire could not be a permanent establishment of the principal. Click here for translation France-vs-Zimmer-March-2010-case-nr-304715 ... Continue to full case