Advertisement

Grid and Taxation: The Server as Permanent Establishment in International Grids

  • Davide Maria Parrilli
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 5206)

Abstract

Tax issues can be a great barrier to the development of international Grids and can be perceived as an obstacle for ICT companies. Provided this fact, the scope of this paper is to analyse the concept of server (to the ends of income taxation) in case of international Grid infrastructures, in the light of the findings of the Organisation for Economic Cooperation and Development (Model Tax Convention and Commentaries) and of the practices so far developed in some countries and, in particular, to assess whether any server can be considered to be a permanent establishment of the company acting as Grid provider, with all its consequences in terms of tax liability.

Keywords

taxation server permanent establishment 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Albregtse, D.A.: The Server as a Permanent Establishment and the Revised Commentary on Article 5 of the OECD Model Tax Treaty: Are the E-Commerce Corporate Income Tax Problems Solved? Intertax 30(10), 356–364 (2002)CrossRefGoogle Scholar
  2. 2.
    BEinGRID FP6 European project, http://www.beingrid.eu
  3. 3.
    Berman, F., Fox, G.C., Hey, A.J.G.: Grid Computing. Making the Global Infrastructure a Reality. John Wiley & Sons Ltd, Hoboken (2003)Google Scholar
  4. 4.
    Bivona, B.: La Stabile Organizzazione e le Nuove Frontiere della Tassazione. Fisconelmondo.it (last accessed: 1/4/2007) (2008), http://www.fisconelmondo.it/news-article.storyid-835.htm
  5. 5.
    Cockfield, A.J.: The Rise of the OECD as Informal ‘World Tax Organization’ Through National Responses to E-Commerce Tax Challenges. YJoLT 8, 136–187 (2006)Google Scholar
  6. 6.
    Department of the Treasury: Selected Tax Policy Implications of Global Electronic Commerce (1996) (last accessed: 31/03/2008), http://www.treas.gov/offices/tax-policy/library/internet.pdf
  7. 7.
    Doernberg, R.L., Hinnekens, L., Hellerstein, W., Li, J.: Electronic Commerce and Multijurisdictional Taxation. Kluwer Law International, The Hague (2001)Google Scholar
  8. 8.
    Gringras, C.: The Laws of the Internet. Butterworths LexisNexis, London (2003)Google Scholar
  9. 9.
    INTM266100 – Non-residents trading in the UK: Treaty permanent establishment (last accessed: 31/03/2008), http://www.hmrc.gov.uk/manuals/intmanual/INTM266100.htm
  10. 10.
    Mbwa-Mboma, M.N.: France, OECD Take Different Views of Unstaffed Servers as Permanent Establishments, WTD, 102–5 (2002) Google Scholar
  11. 11.
    OECD: Clarification on the Application of the Permanent Establishment Definition in E-Commerce: Changes to the Commentary on the Model Tax Convention on Article 5 (2000) (last accessed: 31/03/2008), http://www.oecd.org/dataoecd/46/32/1923380.pdf
  12. 12.
    Pastukhov, O.: International Taxation of Income Derived from Electronic Commerce: Current Problems and Possible Solutions. B.U. J. Sci. & Tech. 12(2), 310–339 (2006)Google Scholar
  13. 13.
    Skaar, A.A.: Erosion of the Concept of Permanent Establishment: Electronic Commerce. Intertax 28(5), 188–194 (2000)CrossRefGoogle Scholar
  14. 14.
    Smith, G.J.H.: Internet Law and Regulation. Sweet & Maxwell, London (2002)Google Scholar
  15. 15.
    Westin, R.A.: International Taxation of Electronic Commerce. Kluwer Law International, Alphen aan den Rijn (2007)Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  • Davide Maria Parrilli
    • 1
  1. 1.Interdisciplinary Centre for Law and Technology (ICRI)K.U. Leuven, IBBTLeuvenBelgium

Personalised recommendations