What is the difference between binding arbitration and advisory arbitration? Why do some consider “advisory arbitration” to be a misnomer? 7.2. Why do many employers who are not unionized require their employees to sign pre-employment arbitration clauses?
In my opinion, taking into account the countries’ freedom to make observations to the provisions of the MTC when disagree the interpretation laid down, at the moment of concluding or negotiating a DTC, it can be binding considered for them in the absence of any additional commentary that they tacitly agreed with the related MTC Commentaries. Please note that, such assumption is strongly applied only for OECD member states, the non-member states having the possibility to invoke their less power in negotiation of the MTC’s Commentaries. ¬ PE concept From a practical point of view, if an entity decides to carry on cross-border business activities, there are three basic methods: a) Parent-Subsidiary structure – by setting-up a foreign subsidiary to operate on foreign market. From a legal perspective are two different entities, but are subject to Transfer Pricing regulations; b) Short-time activities – by carrying on activities in other country, however due to the lack in type, duration or geographical presence there is no PE existence. c) PE structure – by establishing a specific business (e.g. factory, shop etc.) which is not incorporated according with the foreign legislation. Such structure is the most complex and problematic, due to the fact the tax law treatment does not follow the private law, according to which the activities of the headquarter are inseparable to the ones of PE and therefore are assigned to the enterprise itself instead of certain part of the enterprise. Thus, not every unincorporated cross-border business activity leads automatically to the born of a PE. The presence of the foreign entity must reach a certain threshold in the source state, such as particular level o business activity and a substantial economic interest.>GET ANSWER