In a recently published decision of 19 December 2007, the Federal Financial Court (Bundesfinanzhof) held that dividends paid by companies resident in third countries to a permanent establishment (PE) in the Netherlands which belongs to a German limited liability company are not attributable to the PE. (a) Facts. The plaintiff, a German limited liability company (GmbH) was the sole limited partner of a Dutch partnership, besloten commanditaire vennootschap (C.V.), the C.V. being a PE of the GmbH. The general partner of the C.V. was a Dutch limited liability company (B.V.) which sole shareholder was a German partnership (A-KG). The latter,...