Spanish Court Takes Broad View in Determining that Dell's Sales Activities Constitute a Permanent Establishment in Spain

In a decision issued in June 2015, Spain's National Appellate Court took a broad view on what constitutes a permanent establishment (PE) under the 1994 Ireland-Spain tax treaty, upholding the decision of the Central Tax Tribunal that Dells sales activity in Spain constituted a PE for its Irish production facility, Dell Products (Dell Ireland). The case involved the sale of Dell Ireland's products through a local subsidiary in Spain (Dell Spain) under a commissionaire agreement. Although Dell …