The relationship between the general PE definition in article 5(1) of the OECD Model (2017) and the examples set out in the “positive list” in article 5(2) has been a longstanding issue. This topic was the subject of an “observation”, the legal effect and scope of which are uncertain. The recent decision of the Italian Supreme Court in Case No. 28059 (24 November 2017) has shed some light on these matters and is the focus of this note.