BEPS Action 7: The Attempt to Artificially CreateA Taxable Nexusby Oliver R. Hoor and Keith O’DonnellOn October 31, 2014, the OECD released a discus-sion draft regarding action 7 of the base erosionand profit-shifting action plan (prevent the artificialavoidance of the permanent establishment status) forpublic consultation. More than 800 pages of publiccomments have been provided by multinationals, busi-ness associations, and other interested parties on thediscussion draft that includes proposals for changes tothe definition of PE found in the OECD model taxtreaty with a view to broaden its scope. The proposalsin the discussion draft may have a major impact onglobal business models and the allocation of taxingrights over business profits.