In our latest Global Tax Alert, our colleagues Shee Boon Law, Joel Cooper, and James Dalley discuss the recent guidance on the Mutual Agreement Procedure (MAP):
Her Majesty’s Revenue and Customs (HMRC), the UK tax authority, has published revised guidance on the Mutual Agreement Procedure (MAP) in its International Manual (INTM) (INTM 423000 – INTM423130).
The new guidance, published February 1, 2018, closely aligns HMRC’s position with the recommendations of the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) Action 14 (Making Dispute Resolution Mechanisms More Effective) Final Report, which includes minimum standards on accessibility to MAP.
The revised guidance is supplemented by Statement of Practice 1 (2018) (the Statement of Practice), which replaces Statement of Practice 1 (2011) and summarizes the UK’s practice in relation to methods for reducing or preventing double taxation, and the MAP process as provided in UK tax treaties and the European Union Arbitration Convention (90/463/EEC) (EU AC).
The revised guidance, together with the supplementary Statement of Practice, provides detailed information on the following:
- Eligibility for MAP
- Access to MAP
- Submitting a MAP request
- Time limi
- Protective MAP requests
- MAP and domestic relief
- Mutual agreement
- Methods of relief and
- Arbitration.
Read the entire article here.