Mr. Paul Tang:

We have a definition of permanent establishment that is not fit for purpose. We need to have a broader definition of permanent establishment that takes in digital presence. In the European Parliament when we work on these matters, we very much refer to the OECD. The work has been done but it did not lead to a political conclusion. I have explained why. As Mr. Lamassoure said, the work can still be debated and thought about. It is not fixed. We tried to use state-of-the-art elements in our advice but we are aware views might change on that, albeit hopefully not drastically.

This is the first step that is needed. The question then becomes how it is incorporated. We contend that once the proposal of a common consolidated corporate tax base, CCCTB, is adopted, the system is really up to the task of the 21st century.