On September 2, 2016, Tax Executives Institute, Inc., submitted a letter to the OECD commenting on its July 4 public discussion draft regarding Additional Guidance on the Attribution of Profits to Permanent Establishments. The discussion draft consists of follow up guidance under Action 7 of the OECD’s base erosion and profit shifting (better known as BEPS) project. The Institute's comments included the need for more realistic examples of business operations and supply chains that might create permanent establishments, as well as the complexity and administrative burden created by the creation of a permanent establishment in the first instance.
TEI's comments were prepared under the aegis of the Institute's European Direct Tax Committee, whose chair is Nick Hasenoehrl. Benjamin R. Shreck, TEI Tax Counsel, coordinated the preparation of the Institute's comments.