- QUESTION POSTED BY: Student
- PROGRAMME: Postgraduate Diploma in Transfer Pricing
- TOPIC: TP Disputes (WEEK 17)
- LECTURER: Dr Daniel N Erasmus
FULL QUESTION
Are mutual agreement procedures ever published by any tax authorities, at least in redacted forms? If so, are there any sources where MAPs can be read? I only managed to find OECDThe Organisation for Economic Co-operation and Development (OECD) is an international organisation comprising 38 member countries, established to foster economic growth, trade, and development on a global scale. Founded in 1961, the OECD provides a forum for governments to collaborate, share policy experiences, and develop solutions to common economic challenges. The OECD's core mission is to promote policies that improve... publications on MAP statistics, but not the actual texts of MAPs.
FULL WRITTEN ANSWER
Mutual Agreement Procedures (MAPs) are a mechanism outlined in tax treaties that allows authorities of the treaty countries to resolve international tax disputesTax Disputes arise when there is a disagreement between taxpayers and tax authorities regarding the interpretation or application of tax laws. These disputes may concern various issues such as the accuracy of a tax return, the eligibility for tax deductions or credits, the correct amount of tax liability, or transfer pricing adjustments. Tax disputes can lead to lengthy legal proceedings..., including issues of double taxationDouble Taxation occurs when the same income or financial transaction is taxed twice, typically in different jurisdictions. It can arise in two primary contexts: economic double taxation, where the same income is taxed twice in the hands of different taxpayers, and juridical double taxation, where the same taxpayer is taxed on the same income in more than one country. Double... or taxation not in accordance with a treaty. While the process is intended to facilitate resolution between countries, the actual texts of MAPs are often confidential and not published due to the sensitive information and taxpayer confidentiality involved.
However, some tax authorities and international organizations do provide summaries, outcomes, or guidance based on MAP cases in a redacted or generalized form, without disclosing specific taxpayer information. These publications aim to offer transparency about the process and outcomes, as well as to provide insights and guidance for future cases. Examples include:
- OECDThe Organisation for Economic Co-operation and Development (OECD) is an international organisation comprising 38 member countries, established to foster economic growth, trade, and development on a global scale. Founded in 1961, the OECD provides a forum for governments to collaborate, share policy experiences, and develop solutions to common economic challenges. The OECD's core mission is to promote policies that improve... MAP Statistics: As you’ve found, the OECDThe Organisation for Economic Co-operation and Development (OECD) is an international organisation comprising 38 member countries, established to foster economic growth, trade, and development on a global scale. Founded in 1961, the OECD provides a forum for governments to collaborate, share policy experiences, and develop solutions to common economic challenges. The OECD's core mission is to promote policies that improve... publishes aggregated statistics on MAP cases, including information on the number of cases, outcomes, and average resolution times. While these do not include the texts of MAP agreements, they provide a high-level overview of MAP activities across participating countries.
- Country-Specific Summaries: Some countries’ tax authorities may publish summaries or outcomes of MAP cases, providing insights into the issues resolved and the procedures used, without disclosing any taxpayer-specific information. These are often found in annual reports or specific publications dedicated to international tax disputeTax Disputes arise when there is a disagreement between taxpayers and tax authorities regarding the interpretation or application of tax laws. These disputes may concern various issues such as the accuracy of a tax return, the eligibility for tax deductions or credits, the correct amount of tax liability, or transfer pricing adjustments. Tax disputes can lead to lengthy legal proceedings... resolution.
- International Tax Agreements: In some cases, the outcomes of MAPs might be indirectly inferred from changes or clarifications in international tax agreements or treaty-related documents published subsequently.
- Case Law and Legal Analysis: Occasionally, aspects of MAPs may come to light through case law, where court decisions reference the existence or outcome of a MAP. Legal analysis and commentary on these cases can sometimes provide indirect insights into MAP procedures and outcomes.
- Academic and Professional Publications: Tax professionals, academics, and international tax organizations occasionally publish analyses, studies, and commentary on MAP procedures and outcomes, based on publicly available information or anonymized cases.
To find such information, searching through tax authorityTax authorities are fundamental institutions within government frameworks, overseeing tax assessment, collection, and administration. Their operations ensure that tax laws are enforced and public funds are collected efficiently. This article delves into tax authorities' purpose, responsibilities, and structure, offering insights into their essential role in supporting government functions and economic stability. What is a Tax Authority? A tax authority is... websites, international tax organization publications, and tax lawTax laws form the backbone of any nation’s revenue system, setting the rules that govern how individuals and corporations contribute financially to support government functions. These laws define the types of taxes, the applicable rates, and the regulations regarding payment and compliance. They also outline the rights and obligations of taxpayers, ensuring a balanced and fair approach to funding public... journals or databases might be useful. Additionally, professional tax advisory firms and international tax forums or conferences might discuss trends and general outcomes of MAP processes.
For direct sources of MAP case outcomes or analyses, it might be beneficial to consult specific country tax authorityTax authorities are fundamental institutions within government frameworks, overseeing tax assessment, collection, and administration. Their operations ensure that tax laws are enforced and public funds are collected efficiently. This article delves into tax authorities' purpose, responsibilities, and structure, offering insights into their essential role in supporting government functions and economic stability. What is a Tax Authority? A tax authority is... publications or international tax lawTax laws form the backbone of any nation’s revenue system, setting the rules that govern how individuals and corporations contribute financially to support government functions. These laws define the types of taxes, the applicable rates, and the regulations regarding payment and compliance. They also outline the rights and obligations of taxpayers, ensuring a balanced and fair approach to funding public... resources, understanding that the detailed content of MAP agreements themselves is not typically made publicly available due to confidentiality constraints.