Trading in the State; Permanent Establishment
30/01/1997
Query
Taxpayer resident in UK providing labour to building company in state. Whether taxapayer trading in the State through a Permanent Establishment
Decision
Taxapyer trading in the State through a Permanent Establishment. The Permanent Establishment is the building site at which the service is provided. Test is where do the operations take place from which the profits in substance derive. In cases such as this, the place at which the contract is made is not decisive. Note: Appeal Commissioner has disagreed with this view and considers on the evidence the taxpayer is trading with the state rather than in the state. Dissatisfaction expressed with this decision
Income Tax
Section 52, Income Tax Act, 1967
Origin: RLS Division
File ref:IT972001