I do love the barrack room lawyers.
I am not sure how complicated this needs to be. The authority that issues the licence have stated that if its cut up it is invalidated. That authority make its terms for you to exercise the privilege (not a right) perfectly clear. If you choose to violate those terms the authority has the right to withdraw the privilege.
In this case they have stated that the licence must not be cut up. This is an EASA wide agreement.
If you fly to another country and get ramp checked and are found to be in possession of a defaced licence (from being cut up as an example) then I would not want to be explaining that the Barack room lawyers told me it would be OK to cut up.......
But hey, it's your licence, you can do whatever you want with it. I will keep mine in one piece as required by he issuing authority and EASA.....
