The CIOT has responded to the HMRC informal consultation on review of treaty policy positions in relation to changes to the article 5 of the OECD Model Tax Convention (MTC) as a result of the BEPS action reports and to the permanent establishment implications of remote working.
In summary the CIOT’s responses are as follows:
regarding Article 5 of the OECD Model Tax Convention, the CIOT suggests that it is too early to conclude that the changes are not causing difficulties in practice and believes that more time should be allowed for these changes to bed in. However, the CIOT also recognises that flexibility in negotiating treaties is important.
with regard to remote working, the CIOT members are reporting increasing demand on businesses from employees to perform work remotely across a border and businesses can find it challenging to apply the PE regulations in the context of remote work. Guidance from HMRC (and the OECD) around this would be welcomed by businesses and advisers.
The CIOT has responded to the HMRC informal consultation on review of treaty policy positions in relation to changes to the article 5 of the OECD Model Tax Convention (MTC) as a result of the BEPS action reports and to the permanent establishment implications of remote working.
In summary the CIOT’s responses are as follows:
regarding Article 5 of the OECD Model Tax Convention, the CIOT suggests that it is too early to conclude that the changes are not causing difficulties in practice and believes that more time should be allowed for these changes to bed in. However, the CIOT also recognises that flexibility in negotiating treaties is important.
with regard to remote working, the CIOT members are reporting increasing demand on businesses from employees to perform work remotely across a border and businesses can find it challenging to apply the PE regulations in the context of remote work. Guidance from HMRC (and the OECD) around this would be welcomed by businesses and advisers.
