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Preventing avoidance of permanent establishment statusbe allocated to where the significant people functions are performed. 74Second, the reports gave support to the dual taxpayer approach, especiallyfor dependent agent PEs. Under this approach, if the dependentagent PE assumes functions, assets or risks beyond those attributed tothe dependent agent company (associated company of the same group),those additional profits are also taxable in the source State in thehands of the enterprise having the PE. The dual taxpayer approach isnot inherent to the Authorised OECD Approach (AOA); in addition, itcould be applied in the context of the traditional attribution of profitsto PEs, 75 but probably the OECD work in this regard was eye-openingfor some tax administrations, which tried to use it to correct the biasin favour of residence countries in the international context.As a consequence, the OECD reports on attribution of profits toPEs have worked in two divergent ways that may help to explain whyconflicts around PE structures have proliferated recently:‣ ¾ For tax advisers, the new approach provided an important taxplanning tool: if significant people functions are located infavourable tax jurisdictions, this would mean that a relevantportion of a company’s profits would go with them (risks followfunctions, and functions are identified with significant people74See paragraph 15 in Part I (General Considerations) of the 2010 Report:“Accordingly, the authorised OECD approach attributes to the PE those risksfor which the significant functions relevant to the assumption and/or management(subsequent to the transfer) of risks are performed by people in thePE and also attributes to the PE economic ownership of assets for which thesignificant functions relevant to the economic ownership of assets are performedby people in the PE.”75As a matter of fact, the 2008 Report — which also recognizes the dualtaxpayer approach — is attributed an important function with regard to Article7 of the 2008 OECD Model Convention (and previous versions of thatArticle), which follows the traditional approach to attribution of profits toPEs. For examples of the use of the dual taxpayer approach in cases involvingsubsidiaries and PEs of the same group or commissionaire agreements, seeAustralian Taxation Office, Attribution of Profits to a Dependent Agent PE; orthe HM Revenue & Customs (United Kingdom), “Transfer Pricing: Transactionsand Structures: business structures: marketing and distribution — commissionaires:overview,” in International Tax Manual, INTM441040.363