The Taxation of Permanent Establishments in the EU – Avoir Fiscal and Its Legacy

This contribution analyses the evolution of the case law of the European Court of Justice concerning the taxation of permanent establishments, from its very beginning with the famous "Avoir Fiscal" judgement of 1986. Taking that decision as a starting point, it traces its influence on the Court's direct tax jurisprudence over the subsequent three decades. It shows that, while most principles established by the Court back then are still alive in current doctrine, several elements of its reasoning have still not been resolved in a satisfactory manner, despite the explosion of cases on similar issues over the years.