Ms Cora O'Brien:

First, Revenue would not really opine on whether somebody is resident or not. The definition of management and control is set down in case law. It is about where the effective centre of management and control is. It is where all the critical decisions about the company are made.

It is about where strategic issues are decided, where board meetings are held and where the substance of the major issues is determined. That is what determines where the centre of management and control is. Management and control is a common test used throughout the OECD. It is important that it be a common test because, where companies operate across borders, if there are different rules on residence, there will be a lot of confusion. There must be an agreed framework - the management and control framework. Where there is a question about whether a company is resident in one country or another, it comes back under the treaty to where the centre of management and control of the company is. That determines its residence and the taxing rights of the country.