Would any of these situations result in PEs Permanent Establ

Would any of these situations result in PE’s (Permanent Establishment)? Why?

a) X, a French company, operates a tee-shirt stand for six weeks every spring during spring break.

b) Jorge, a Spanish citizen, conducts a six-week floorshow in New York for his winter fashion clothing line.

c) The First National Bank of Berlin has an office in Fort Lauderdale.

d) What about Bill\'s use of Paris hotel rooms to call clients? Bill is a salesman for IBM.

e) What if Bill temporary used the Paris office of IBM-France (IBM\'s wholly-owned French sub) to call some clients?

f) Prada, a Russian vodka company, maintains an office and employees in New York just to distribute free vodka at social functions.

Solution

a and b) It would not quilfy since not a fixed place of business

c) would qualify as it is a fixed place of business through which the business of an enterprise is wholly or partly carried on

d and e) again they do not have fixed place of business

f)  Prade will not qualify even if they have a permanent establishment because the activities are limited to certain auxiliary and preparatory activities.