Mr. Seamus Coffey:

No. Countries that only have the test of incorporation will still claim companies that have all their business there, using the test of management and control. The test of incorporation is the first base that companies use. If a company is registered in Ireland and does all its business in France, the French authorities will first apply the test of incorporation. However, if a company is registered in Ireland and does all its business in France, the French look to that company and say that it is resident in France because its place of effective management and control is there. That is the tie-breaker between the two. It is not the case that national authorities just use the test of incorporation. They do use it. However, if companies do all their business in those jurisdictions, they will seek to make those companies resident in those jurisdictions. That is a standard feature right around the world. I am sure there are hundreds of double tax treaties that have that provision at their heart. One might say that the USA does not have this doctrine. The USA is an outlier in some of these areas. Most other countries would, however.