Abstract
Abstract This chapter discusses agents in international tax treaties. One of the most common ways through which an enterprise may undertake business in another jurisdiction is through the provision of services by an agent. The chapter examines one particular issue in relation to agents in international tax treaties: the treatment of commissionaire arrangements. The question here is whether the commissionaire constitutes a ‘dependent agent’. The issue has arisen due to different conceptions of agents under civil law and common law. The potential for differing tax treatment arising from the various concepts of agents was recognized during the drafting of the first model tax treaties in 1928 but the issue was left unresolved. However, the potential to avoid taxation or minimize taxes through the use of commissionaire arrangements has recently been addressed through the coordinated global effort to target base erosion and profit shifting (BEPS).
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