GIM10235 - Non-resident insurers: scope of UK taxing rights: section 11 ICTA & Article 7 OECD Model: OECD Report on the Attribution of Profits: Model Article 7(4) - apportionment methods: Model Article 7(7) - interaction with other Articles
Current Article 7(4) provides that insofar as it has been 바카라 사이트榗ustomary바카라 사이트� to determine the profits attributed to a permanent establishment on the basis of apportionment of total profits of the enterprise, that method may continue (GIM10170). In practice, this method is only acceptable if it is in accordance with other principles in the Article and it is 바카라 사이트済enerally not appropriate as a method which has regard only to the activities of the permanent establishment바카라 사이트�. With the development of clear principles, Article 7(4) is expected to become redundant.
Article 7(7) provides that other Articles - notably in this context Article 10 (dividends) and Article 11 (interest) 바카라 사이트� in principle take precedence. Even so, the authorised OECD approach discussed above is relevant. This is because there is expected to be co-ordination between the manner in which the investment income that is attributable to a permanent establishment is determined under Article 7 and the manner in which the investment assets that are considered (in the wording of the interest and dividend articles) 바카라 사이트榚ffectively connected with바카라 사이트� or 바카라 사이트榩art of the business property of바카라 사이트� the permanent establishment is determined under Article 10(4) or Article 11(4). See also GIM10190.