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Oecd Mutual Agreement Procedure Statistics

by on Apr.11, 2021, under Uncategorized

International double taxation can occur when two jurisdictions attempt to tax the same transactions or activities. While tax treaties directly resolve most of these cases, international double taxation may persist if two jurisdictions disagree on the interpretation or application of a treaty provision. The Article of the Mutual Agreement Procedure (MAP) of a tax treaty therefore provides for a mechanism for resolving these cross-border tax disputes. There are clear and often long delays in applying for the POP. In particular, Article 16, paragraph 1, second sentence, provides that the MAP case must be brought within a specified period of time, i.e. less than three years from the first notification of the tax measure, and not in accordance with the provisions of a secure tax treaty. This means that taxpayers are not able to present their arguments within three years of the first notification of the tax measure leading to taxation, in accordance with the provisions of the secured tax treaty. The first return is generally considered the final assessment at the end of a tax collection or other. For 1% of the POPs files closed, the parties agreed that there was no tax contrary to the tax treaty.

Of the 26% of closed cases that did not solve the problem, 6% were withdrawn by taxpayers, while 20% were not resolved for various reasons (notably because there was no agreement between the competent authorities). In addition, from the 2008 reporting period, statistics from some countries divide map cases between OECD and partner countries (where these countries provided this information). For more information on the POP framework, including definitions of the terms used in the reports, see the 2007 report “Improving Dispute Resolution under the Tax Convention.” Statistics show that 2,690 cases of POPs were launched on or after January 1, 2019. This figure increased by almost 13% compared to 2018 data, from 2,385 to 2,690 cases. This trend is expected to continue and, despite the COVID 19 pandemic, POPs activity is not expected to decline significantly. According to the OECD, it is fuelled by a number of factors, including increasing globalization, the focus of tax authorities on cross-border tax issues, and growing confidence in the POP process and their knowledge. Note: The following legal systems were inclusive in 2018, but did not present their MAP statistics for 2018: Andorra, Angola, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Benin, Bermuda, British Virgin Islands, Burkina Faso, Cabo Verde, Cameroon, Congo, Democratic Republic of Congo, Djibouti, Dominica, Egypt, Gabon, Grenada, Haiti, Jamaica, Liberia, Mongolia, Montserrat, Nigeria, Northern Makedon, St. Lucia, St. Vincent and the Gradenas , Sierra Leone , Sri Lanka, Ukraine, the United Arab Emirates and Vietnam. Pop 2019 statistics include the number of POPs cases each jurisdiction has with each of its contractual partners, and the performance of the jurisdiction empowered to report on key indicators for each type of case can be compared by an interactive tool. Even in the event of an arbitration request, the EU review found that there could be many shortcomings in the system, including delays or lack of setting up the advisory committee and the lack of agreement on the appointment of the chairman of the advisory committee that delays or prevents the procedure.


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