Where a PE exists as a result of either the fixed-place-of-business rule or the agency rule, it will nonetheless not be treated as being a PE if, in relation to the business of the company as a whole, the activities carried on are only of a preparatory or auxiliary character. This applies both in relation to physical and agency PEs. The extent of ‘preparatory or auxiliary’ activities is illustrated by art. 5(4) of the UK-Turkey Treaty thus:

‘5(4) Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include:

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