§ 4 — “Permanent establishment” and “main entity”

4.—(1) In this Act, a “permanent establishment” is —(a)

a place of business (including a deemed place of business under an applicable tax treaty in force) situated in a jurisdiction where it is treated as a permanent establishment in accordance with an applicable tax treaty in force, but only if the income attributable to it in accordance with a provision similar to Article 7 of the OECD Model Tax Convention is subject to tax under the law of that jurisdiction;

(b)

if there is no applicable tax treaty in force — a place of business situated in a jurisdiction (including a deemed place of business under the law of that jurisdiction) in respect of which the law of that jurisdiction imposes a tax on the income attributable to it on a net basis similar to the manner in which tax residents of that jurisdiction are taxed;

(c)

if a jurisdiction has no corporate income tax system — a place of business situated in that jurisdiction (including a deemed place of business under the law of that jurisdiction) that would be treated as a permanent establishment in accordance with the OECD Model Tax Convention, but only if that jurisdiction would have had the right to tax the income attributable to it in accordance with Article 7 of the OECD Model Convention; or

(d)

a place of business (or a deemed place of business under the law of the jurisdiction where the main entity is located) that is not one in paragraphs (a), (b) and (c), through which operations are conducted outside the jurisdiction where the main entity is located, but only if the law of that jurisdiction exempts from tax income attributable to such operations.

(2) In this Act, a “main entity”, in relation to a permanent establishment, is the entity that includes the FANIL of the permanent establishment in its financial statements.

(3) For the purposes of this Act, a permanent establishment is treated as an entity that is distinct from the main entity it is a permanent establishment of (whether or not that is the case) and any other permanent establishment of the main entity.

(4) Any right, obligation, debt or liability in this Act of a constituent entity that is a permanent establishment is that of its main entity.

—(1) In this Act, a “permanent establishment” is —(a)

a place of business (including a deemed place of business under an applicable tax treaty in force) situated in a jurisdiction where it is treated as a permanent establishment in accordance with an applicable tax treaty in force, but only if the income attributable to it in accordance with a provision similar to Article 7 of the OECD Model Tax Convention is subject to tax under the law of that jurisdiction;

(b)

if there is no applicable tax treaty in force — a place of business situated in a jurisdiction (including a deemed place of business under the law of that jurisdiction) in respect of which the law of that jurisdiction imposes a tax on the income attributable to it on a net basis similar to the manner in which tax residents of that jurisdiction are taxed;

(c)

if a jurisdiction has no corporate income tax system — a place of business situated in that jurisdiction (including a deemed place of business under the law of that jurisdiction) that would be treated as a permanent establishment in accordance with the OECD Model Tax Convention, but only if that jurisdiction would have had the right to tax the income attributable to it in accordance with Article 7 of the OECD Model Convention; or

(d)

a place of business (or a deemed place of business under the law of the jurisdiction where the main entity is located) that is not one in paragraphs (a), (b) and (c), through which operations are conducted outside the jurisdiction where the main entity is located, but only if the law of that jurisdiction exempts from tax income attributable to such operations.

(2) In this Act, a “main entity”, in relation to a permanent establishment, is the entity that includes the FANIL of the permanent establishment in its financial statements.

(3) For the purposes of this Act, a permanent establishment is treated as an entity that is distinct from the main entity it is a permanent establishment of (whether or not that is the case) and any other permanent establishment of the main entity.

(4) Any right, obligation, debt or liability in this Act of a constituent entity that is a permanent establishment is that of its main entity.