The migration of a debtor's 'centre of main interests' (COMI) may well be desirable for insolvency purposes. However, a change of COMI is not without other implications. Falling within the laws of a certain country for EU Insolvency Regulation purposes does not occur in a vacuum and jurisdiction migration cannot generally be isolated to COMI. One area where jurisdiction of residence is also vitally important and equally complex is tax. Many companies spend considerable time and effort ensuring that they are resident in a certain jurisdiction for tax purposes and that their activities in another do not result in a taxable presence there. A typical double tax treaty contains complicated provisions addressing the situation that can arise when a person is resident for tax purposes in both states that are party to the relevant treaty.
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