Examines the interpretation of the term "attributable" and how to treat for tax purposes the dealings between a PE (permanent establishment) and the enterprise of which it is a part. The article first presents a historical analysis of the evolution of the provisions on the "attribution of profits" to PEs. It then considers the attribution of profits to PEs under the current OECD Model and Commentary and the 2001 OECD Discussion Draft on the Attribution of Profits to PEs. Finally, the article discusses the "independence fiction" and gives potential scenarios regarding transfers of trading stock and capital assets from the general enterprise to the PE and vice versa.