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PE Colloquium

Permanent Establishment Colloquium 

On October 28 CATRC members in cooperation with International Fiscal Association, American Chamber of Commerce, and Association of Kazakhstani Taxpayers organized Permanent Establishment (PE) colloquium. In the course of the colloquium PE concept was discussed in the frame of Kazakhstani tax laws and international treaties as well.

The organizers of the colloquium put their major purpose as to discuss and overview law provisions exercised in Kazakhstan concerning PE. Those included primarily the Tax Code of the RK, double tax treaties, and international tax conventions as UN and OECD one. As an introductory step, Tolkyn Turkpenova LLM-1 gave definition to the concept of PE. She generalized the PE trends in international arena and specified Kazakhstani approach. Further there was a discussion of major approaches/tests used as the basic tools for identifying activities that create PE. Afterwards Xeniya Yeroshenko BCB-4 expanded this view to the activities not creating PE. Primary attention was drawn to preparatory and auxiliary activities and differences in treating them under the Tax Code and international conventions.

Aigerim Abildayeva BSS-4 presented special considerations related to the types of PE. The discussion was also built on the ground of comparison of local laws with the international ones. Further Meruyert Assiolova LLM-2 discussed rules of attribution of profits to PE under domestic law. This included the comparison of artificial cases illustrating differences in profit sharing and tax base calculations.

Next section was devoted to Catherine Brown, a special guest speaker from Canada. Prof Brown has an experience of lecturing taxation issues from 1981 and currently is engaged in the Faculty of Law, University of Calgary. Expressing her appreciation towards the comprehensiveness of the Kazakhstani tax code she made generalized comparisons with the Canadian one. There were discussions of interactions between tax and trade agreements, double tax treaties presented on behalf of cases taking place in the international practice. Also, Prof Brown raised several questions for further consideration such as changing patterns in business activities brought by technological advancement and their effects on tax policies.

The PE colloquium increased the understanding of participants in the interest area. There are intentions to continue similar events to discuss deeper the issues being left under question.

by Aigerim Abildayeva