In a decision of 16 January 2007 (reported 31 May 2007), the Court of Appeal Ghent (Hof van Beroep Gent) decided in a case on the existence of a permanent establishment (PE) under the 1970 Belgium-Netherlands tax treaty on income and capital (the "treaty"). Details of the case are summarized below.
(a) Facts. A Dutch distribution centre of an international group is responsible for the maintenance of central and local stock levels of spare parts, which are necessary for maintenance …