Tax treaties

Discussion draft on a revised Commentary on Article 7 (Business Profits) of the OECD Model Tax Convention


from 10 April to 15 June 2007 (or 1 August 2007)

In December 2006, the Committee on Fiscal Affairs released new versions of Parts I, II and III of its Report on the Attribution of Profits to Permanent Establishments, along with a cover note containing an update on the status of that project. As indicated in that note,  the Committee has decided that in order to provide improved certainty for the interpretation of existing treaties based on the current text of Article 7, a revised Commentary should be prepared taking into account those aspects of the Report that do not conflict with the existing Commentary.

This revised Commentary on Article 7 is now being released as a discussion draft. Comments on this discussion draft should be sent if possible before 15 June 2007 so that they may be examined at the next meeting of the sub-group mandated to draft the implementation package (that meeting will take place on 25-27 June). Comments sent after that date but before 1 August 2007 will also been examined, but at a later meeting. It is expected that the second part of the implementation package (i.e. a new version of Article 7 with accompanying new Commentary) will be released as a subsequent discussion draft towards the end of the year. Comments should be sent to Jeffrey Owens, Director, CTPA.