Remerciez-le!

Remerciez @Admin pour avoir partagé cet document gratuitement, de la manière la plus simple, en partageant sur les réseaux sociaux.

See discussions, stats, and author profiles for this publication at: https://ww

See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/344558315 International Taxation of Cloud Computing Permanent Establishment, Treaty Characterization, and Transfer Pricing Thesis · October 2020 DOI: 10.13140/RG.2.2.12767.48803 CITATIONS 0 READS 387 1 author: Alexander Weisser University of Geneva 1 PUBLICATION 0 CITATIONS SEE PROFILE All content following this page was uploaded by Alexander Weisser on 09 October 2020. The user has requested enhancement of the downloaded file. Alexander Weisser International Taxation of Cloud Computing Permanent Establishment, Treaty Characterization, and Transfer Pricing Alexander Weisser International Taxation of Cloud Computing Permanent Establishment, Treaty Characterization, and Transfer Pricing Éditions juridiques libres (Freier juristischer Verlag) Les Éditions juridiques libres (EJL | FJV) sont une maison d’édition juridique suisse fondée par un groupe de chercheurs en droit. Sans but lucratif, les EJL publient des ouvrages scientifiques en allemand, français, italien et anglais à destination de tous les professionnels du droit suisse. Au sein de leurs collections, les EJL accueillent tout type d’ouvrage scientifique de qualité (monographie et thèse, ouvrage collectif, commentaire, revue, etc.), qu’il s’agisse des travaux de chercheurs indépendants ou issus d’institutions publiques de recherche. Les ouvrages publiés aux EJL sont disponibles au format numérique, gratuitement et en intégralité (open access). Des exemplaires papier de leurs publications sont éga- lement disponibles au moyen d’un système d’impression à la demande. Les EJL ont pour triple objectif d’améliorer l’accessibilité des publications juridiques, d’en réduire les coûts pour les institutions et les particuliers, ainsi que d’en améliorer le bilan écologique. Toutes les publications des EJL | FJV sont en accès libre et gratuit sur https://www.ejl-fjv.ch/ c b n d La présente œuvre est soumise à une licence Creative Commons CC BY-NC-ND 4.0. L’utilisation, la reproduction, le partage de l’œuvre sont notamment autorisés à condition : (i) d’attribuer l’œuvre à son auteur; (ii) de ne pas exploiter l’œuvre commercialement; (iii) de ne pas effectuer de modifica- tions de l’œuvre. Le logo «open access», créé par The Public Library of Science (PLoS), est soumis à une licence CC BY-SA 3.0. Les polices de caractères Roboto et Roboto Condensed, créées par Christian Robertson, sont soumises à une licence Apache 2.0. La présente publication a bénéficié d’une subvention octroyée par la Faculté de droit de l’Université de Genève. Editions Juridiques Libres (Freier Juristischer Verlag) Lausanne 2020 ISBN 978-2-88954-030-3 (print) ISBN 978-2-88954-031-0 (PDF) Outline Acknowledgements ............................................................... XIX List of Abbreviations ............................................................. XXI Bibliography .................................................................. XXXIII Part I: De Lege Lata ............................................................... 1 Chapter 1: Introduction ....................................................... 3 Chapter 2: Cloud Computing ................................................ 5 Chapter 3: Current International Taxation Rules .................. 39 Chapter 4: Application to Cloud Computing ...................... 159 Chapter 5: Conclusion De Lege Lata ................................ 277 Part II: Are the Current Rules Appropriate? ............................ 279 Chapter 1: Introduction ................................................... 281 Chapter 2: Ottawa Principles of Taxation ......................... 285 Chapter 3: Prior Work ...................................................... 307 Chapter 4: Application to Cloud Computing ...................... 337 Chapter 5: Conclusion on Appropriateness ....................... 425 Part III: De Lege Ferenda .................................................... 427 Chapter 1: Introduction ................................................... 429 Chapter 2: Recommendations .......................................... 431 Chapter 3: Avenues of Further Research .......................... 503 Chapter 4: Summary of the International Taxation of Cloud Computing ..................................................... 513 I Table of Contents Acknowledgements ............................................................... XIX List of Abbreviations ............................................................. XXI Bibliography .................................................................. XXXIII Part I: De Lege Lata ............................................................... 1 Chapter 1: Introduction ....................................................... 3 Chapter 2: Cloud Computing ................................................ 5 Section I Basics ............................................................... 5 Section II Typical Fact Patterns ......................................... 9 § I. Introduction ....................................................... 9 § II. Case Study A: Cloud Provider .............................. 9 § III. Case Study B: Cloud Customer .......................... 10 Section III Types of Transactions ...................................... 13 § I. Introduction ..................................................... 13 § II. Taxonomy ........................................................ 14 § III. Commentary..................................................... 16 Section IV Parties to Transactions .................................... 19 § I. Introduction ..................................................... 19 § II. Cloud-Specific Transactions with a Centralized Provider ........................................................... 22 A) Cloud-Specific Pricing ...................................... 22 B) Risks ............................................................... 25 § III. Transactions within a Decentralized Cloud Provider ....................................................................... 27 A) Introduction ..................................................... 27 B) Software Development Team ............................ 28 II C) Hardware Operation Team ............................... 29 D) Intellectual Property Rights Company ............... 32 E) Real Estate Company ....................................... 35 Section V Summary ......................................................... 37 Chapter 3: Current International Taxation Rules .................. 39 Section I Permanent Establishments .............................. 39 § I. Introduction ...................................................... 39 § II. General Definition of Permanent Establishment.. 42 A) Introduction .................................................... 42 B) Place of Business Test .................................... 43 1) Introduction .................................................... 43 2) Tangible Nature of a Place of Business ............ 44 3) Right of Use (“at disposal”) .............................. 44 a) Introduction ................................................. 44 b) Negative Definition ....................................... 48 i) Legal Right ............................................... 48 ii) Association with Other Permanent Establishment Tests ................................. 48 iii) Association with Other Types of Permanent Establishments ........................................ 51 iv) Mere Presence ......................................... 52 4) Conclusion on the Place of Business Test ........ 53 C) Fixation Test ................................................... 53 1) Introduction .................................................... 53 2) Geographical Link ............................................ 54 3) Duration .......................................................... 54 a) Required Minimum Period of Time ................ 55 III b) Non-temporary Nature .................................. 56 4) Conclusion on the Fixation Test ........................ 57 D) Business Activity Test ...................................... 57 1) Introduction and General Features of Business Activity ............................................................ 57 2) Functional Integration (“through which”) ........... 60 3) Attribution of Activity (“of an enterprise”) .......... 64 a) Introduction .................................................. 64 b) Standard Case: Personnel ............................. 65 c) Subcontractors? ........................................... 66 d) Conclusion on the Attribution of Activity ........ 69 4) Conclusion on the Business Activity Test .......... 69 E) Preparatory or Auxiliary Activities Exception ..... 70 1) Introduction ..................................................... 70 2) List of Examples .............................................. 71 3) General Criterion .............................................. 73 4) Anti-avoidance Rules ........................................ 75 5) Conclusion on the Activities Exception .............. 76 F) Conclusion on the General Definition ................ 77 § III. Dependent Agent Permanent Establishment ...... 77 A) Treaty Definition .............................................. 77 B) Person ............................................................. 80 C) Authority to Conclude Contracts in the Name of the Enterprise .................................................. 81 1) Literal Meaning of Pre-BEPS Art. 5(5) MOECD ... 81 2) “Commissionnaire” Arrangements and Similar Schemes .......................................................... 83 IV 3) BEPS Action 7 ................................................. 84 4) Economic Interpretation of the Pre-BEPS Art. 5(5) MOECD ........................................................... 88 5) Summary ......................................................... 91 D) Exclusion of Independent Agents ..................... 91 1) Introduction .................................................... 91 2) Independence of the Agent .............................. 92 3) Acting in the Ordinary Course of the Agent’s Business ......................................................... 94 4) BEPS Action 7 ................................................. 95 5) Summary ......................................................... 97 E) Habitual Exercise ............................................. 97 F) Preparatory or Auxiliary Activities Exception ..... 99 G) Conclusion on Dependent Agent Permanent Establishments ............................................... 99 § IV. Services Permanent Establishment .................. 100 § V. Substantial Equipment Permanent Establishment ...................................................................... 101 § VI. Swiss Domestic Permanent Establishment ....... 102 A) Introduction and Scope of Application ............. 102 B) Basics and Legislative History......................... 103 C) Comparison with the MOECD General Definition ..................................................................... 105 D) Comparison with a Dependent Agent Permanent Establishment ................................................ 107 E) Summary ........................................................ 110 § VII. Conclusion on Permanent Establishments ....... 111 Section II Treaty Characterization ................................... 113 V § I. Introduction ................................................... 113 § II. Income from Immovable Property ................... 114 A) General Features ............................................ 114 B) Immovable Property ....................................... 115 C) Accessories to Immovable Property ................ 117 D) ICS Equipment ............................................... 118 E) Summary ....................................................... 119 § III. Royalties ........................................................ 120 A) General Features ............................................ 120 B) Definitions ..................................................... 121 1) Royalties ........................................................ 121 2) Copyright ....................................................... 122 3) Know-How ..................................................... 122 C) Summary ....................................................... 124 § IV. Capital Gains .................................................. 124 § V. Technical Services.......................................... 125 A) General Features ............................................ 125 B) MOECD .......................................................... 128 C) UN Model ....................................................... 128 D) Law of the Source Jurisdiction ........................ 129 E) Summary ....................................................... 130 § VI. Business Profits ............................................. 130 § VII. Summary of Treaty Characterization ............... 132 Section III Transfer Pricing ............................................. 135 § I. Introduction ................................................... 135 § II. Associated Enterprises ................................... 137 VI § III. Arm’s Length Principle .................................... 138 § IV. Comparability Analysis .................................... 140 § V. Transfer Pricing Methods ................................ 141 A) Introduction ................................................... 141 B) Comparable Uncontrolled Price Method ........... 142 C) Cost-Plus Method ........................................... 142 D) Transactional Net Margin Method ................... 144 E) Transactional Profit Split Method .................... 147 F) Summary on Transfer Pricing Methods ............ 149 § VI. Swiss Legal Basis for Initial Adjustment .......... 150 A) Introduction ................................................... 150 B) Commercial Accounts ..................................... 150 C) Corrective Rules and Adjustments ................... 151 D) Connection with Profit Attribution to Permanent Establishments .............................................. 152 § VII. Summary of Transfer Pricing ........................... 154 Section IV Summary of the Relevant Rules ....................... 157 Chapter 4: Application to Cloud Computing ...................... 159 Section I Permanent Establishment ............................... 159 § I. General Definition of Permanent Establishment 159 A) Introduction ................................................... 159 B) Case Study A: Cloud Provider .......................... 162 1) Introduction ................................................... 162 2) Place of Business Test ................................... 163 3) Fixation Test .................................................. 165 4) Business Activity Test..................................... 166 a) Introduction ................................................ 166 VII b) General Features ........................................ 166 c) Functional Integration (“through which”) ...... 166 d) Attribution of Activity (“of an enterprise”) .... 168 e) Conclusion on the Business Activity Test ..... 169 5) Exception of Preparatory or Auxiliary Activities 169 a) Introduction ................................................ 169 b) Lists of Examples uploads/S4/ ejl0015-weisser-final-web.pdf