Table of Contents
Detailed Analysis
Chapter 1 - AUSTRALIA
1:I. Introduction
1:II. Australian Competent Authority
A. Functions in General
B. Identification
1:III. Mutual Agreement Procedure in Taxpayer Cases
A. Treaty Provisions on Mutual Agreement
1. OECD Model
2. Australian Income Tax Treaties
B. Background
1. Historical Background
2. Powers of Competent Authorities in MAP
3. Types of Cases
a. Allocation Cases
b. Nonallocation Cases
4. Program Evaluation
5. Self-Adjustment Not Permitted
C. The Process
1. Sources
2. Taxes and Issues Covered
3. Who Can Apply?
4. Timing of Requests
a. In General
b. Statute of Limitations and Other Procedural Limitations
5. Role of ATO Transfer Pricing Specialists
6. The Role of Appeals
7. Pre-Filing and Post-Filing Conferences
8. Presentation of Case
9. Small Case Procedure
10. Justification of Claim
11. Denial of Requests
12. Processing of MAP Cases
a. Stages of Procedure in the ATO
(1) Examination of Taxpayer's Claim
(2) Preparation of ATO Position
(3) Negotiation
(4) Decision on Taxpayer's Claim
b. Withdrawal of MAP Request
c. Court Proceedings
13. Confidentiality in Competent Authority Proceedings
a. Confidentiality of Returns and Return Information
b. Communication of Taxpayer Information Between Competent Authorities
c. Nondisclosure by Competent Authorities
14. Interest and Penalties
15. Remission of General Interest Charge Accrued During MAP
16. Payment of Tax During MAP
17. Repatriation of Funds After Reallocation
D. Arbitration
1. OECD Position
2. Need for Arbitration
1:IV. Advance Pricing Arrangements
A. Introduction
B. Prelodgement Meeting
C. Preparation and Lodgement
D. Evaluation of APA Application
E. Documentation Requirements
F. Liaison with Other Competent Authority
G. Small Business APAs
H. Compensating Adjustments
I. Time Frame
J. Withdrawing from APA Process
1:V. Consultation Between Competent Authorities Regarding Treaty Interpretation or Application
1:VI. Exchange of Information
A. Exchange of Information Under International Agreements
B. Exchange of Information Under Income Tax Treaties
1. Liaison with Other Tax Administrations
2. Types of Exchanges
a. Exchanges Regarding Changes in Tax Laws
b. Automatic Exchange of Information
c. Spontaneous Exchange of Information
d. Specific Requests for Information
e. Industry-Wide and Issue-Specific Exchange of Information
3. Simultaneous Examination Programs
a. Definition
b. Specific Objectives
c. Procedures
d. Disclosure of Information
4. Responding to Specific Information Requests Under Tax Treaties
a. Specificity of Request
b. Use of Revenue Powers to Obtain Information
c. Mutuality Clause
5. Business Secrets
6. Restrictions on Use and Disclosure of Exchanged Information
1:VII. Assistance in Collection
Chapter 2 -CANADA
2:I. Introduction
2:II. Canadian Competent Authority
A. Functions in General
B. Legislative Framework
C. Identification
D. Taxpayer Cases
2:III. Mutual Agreement Procedure in Taxpayer Cases
A. Treaty Provisions on Mutual Agreement
B. Background
C. The Process
1. Sources
2. Taxes and Issues Covered
3. Who Can Apply?
4. Timing of Requests
5. Unilateral Relief
6. Role of Appeals
7. Pre-Filing and Post-Filing Conferences
8. Information Required
9. Protective Measures
10. Small Case Procedure
11. Simultaneous Appeals Procedure
12. Denial of Requests
a. Appeal Rights
b. De Minimis Amounts
13. Processing of MAP Cases
a. Withdrawal of MAP Request
b. Effect on Domestic Proceedings
c. Court Proceedings
14. Confidentiality in Competent Authority Proceedings
15. Interest on Deficiencies and Refunds, and Penalties
16. Repatriation of Funds After Reallocation
17. Accelerated Competent Authority Procedure
D. Arbitration
E. Mandatory Use of MAP to Protect Canadian Foreign Tax Credits
F. Application to Provinces and Territories
2:IV. Advance Pricing Arrangements
Introductory Material
A. Circular Contents
B. Pre-Filing Meetings
C. Processing an APA Request
D. APA Submission Content
E. Use, Disclosure, and Protection of Information
F. Renewal
2:V. Consultation Between Competent Authorities Regarding Treaty Interpretation or Application
2:VI. Exchange of Information
A. In General
1. General History
2. Legislative Procedures for Accessing Foreign-Based Information
B. Exchange of Information Under Income Tax Treaties
1. Scope of Treaty Provisions
a. Taxpayers Covered
b. Taxes Covered
c. Nature of Information
2. Types of Exchanges
a. Automatic Exchange of Information
b. Spontaneous Exchange of Information
c. Specific Requests for Information
3. Simultaneous Examination Programs
4. Restrictions on Use and Disclosure of Exchanged Information
2:VII. Assistance in Collection
Introductory Material
A. Accepted Revenue Claims
B. Citizenship Rule
Chapter 3 -FRANCE
3:I. Introduction
3:II. French Competent Authority
3:III. Mutual Agreement Procedure for Taxpayer Cases
A. Background
B. The Process
1. Scope of the MAP
2. Persons Eligible to Invoke the MAP
3. Procedure to Invoke the MAP
C. Arbitration
1. In General
2. Arbitration Commission and Procedure
3:IV. Advance Pricing Agreements
Introductory Material
A. APA Procedure
B. Content of APA
C. Advantages and Disadvantages of an APA
3:V. Exchange of Information
Chapter 4 -MEXICO
4:I. Introduction
4:II. Mexican Competent Authority
A. Functions in General
B. Identification
4:III. Mutual Agreement Procedure in Taxpayer Cases
A. Treaty Provisions on Mutual Agreement
1. OECD Model
2. Mexico's Income Tax Treaties
B. Background
1. Historical Background
2. Powers of Competent Authorities in a MAP
3. Types of Cases
a. Allocation Cases
b. Nonallocation Cases
4. Program Evaluation
5. Self-Help
C. The Process
1. Taxes and Issues Covered
2. Who Can Apply?
3. Timing of Requests
a. In General
b. Statute of Limitations and Other Procedural Limitations
4. Role of Appeals
5. Pre-Filing and Post-Filing Conferences
6. Information Required
7. Protective Measures
8. Small Case Procedure
9. Simultaneous Appeals Procedure
10. Denial of Requests
a. Basis for Denial
b. Appeal Rights
c. De Minimis Amounts
11. Processing of MAP Cases
a. Withdrawal of MAP Request
b. Effect on Domestic Proceedings
c. Court Proceedings
12. Confidentiality in Competent Authority Proceedings
a. Confidentiality of Returns and Return Information
b. Communication of Taxpayer Information Between Competent Authorities
c. Nondisclosure by Competent Authorities
13. Interest on Deficiencies and Refunds
14. Penalties
15. Repatriation of Funds After Reallocation
16. Accelerated Competent Authority Procedure
D. Arbitration
1. Background - Mexican Treaties
2. Arbitration Procedures Under Other Mexican International Agreements
3. Need for Arbitration
E. Protecting the Availability of Mexican Foreign Tax Credits
4:IV. Advance Pricing Agreements
4:V. Consultation Between Competent Authorities Regarding Treaty Interpretation or Application
A. In General
B. Scope of Consultation Provisions
C. Use of Consultation Procedure
D. Legal Effect of Consultations
4:VI. Exchange of Information
A. Exchange of Information Outside of International Agreements
B. Exchange of Information Under Income Tax Treaties
1. Scope of Treaty Provisions
2. Types of Exchanges
a. Exchanges Regarding Changes in Tax Laws
b. Automatic Exchange of Information
c. Spontaneous Exchange of Information
d. Specific Requests for Information
e. Industry-Wide Exchange of Information
3. Simultaneous Examination Programs
a. General Purpose
b. Disclosure of Information
4. Responding to Specific Information Requests Under Tax Treaties
a. Use of Revenue Powers to Obtain Information
b. Mutuality Clause
5. Business Secrets
6. Restrictions on Use and Disclosure of Exchanged Information
C. Exchange of Tax Information Agreements
1. Taxes Covered
2. Types of Exchanges
3. Agreement Provisions
4. Exchange of Information Programs
5. Limitations in Agreements
4:VII. Assistance in Collection
Chapter 5 - THE NETHERLANDS
5:I. Introduction
5:II. The Dutch Competent Authority
5:III. Mutual Agreement Procedure in Taxpayer Cases
A. The Process
1. Who Can Apply?
2. Corresponding Adjustments
3. Issues Covered in a MAP
4. Form and Content of Request
5. Timing of Requests and Limitations
6. Pre-Filing Meeting/Taxpayer Participation
7. Concurrence of Objection and Appeal Procedure and the MAP
8. Extension for Payment, Transfer Pricing Adjustments, Interest Charges, and Penalties
9. Secondary Adjustments
B. Netherlands-U.S. Administrative Procedures
C. Arbitration
5:IV. Advance Pricing Agreements
Introductory Material
A. Organization
B. Unilateral versus Bilateral APAs
C. Scope of APAs
D. Duration
E. Retroactive Effect
F. APA Request
G. Pre-Filing Meeting
H. Case Management Plan
I. Small Business APA
5:V. Exchange of Information
Chapter 6 - THE UNITED KINGDOM
6:I. Introduction
6:II. U.K. Competent Authority
A. Functions in General
B. Identification
6:III. Mutual Agreement Procedure in Taxpayer Cases
A. Treaty Provisions on Mutual Agreement
1. OECD Model
2. U.K. Income Tax Treaties
B. Background
1. Historical Background
2. Powers of Competent Authorities in a MAP
3. Types of Cases
a. Allocation Cases
b. Nonallocation Cases
4. Program Evaluation
5. Self-Help Alternative
C. The Process
1. Sources
2. Taxes and Issues Covered
3. Who Can Apply?
4. Timing of Requests
a. In General
b. Statute of Limitations and Other Procedural Limitations
(1) In General
(2) Treaty Provisions
(3) Opening Barred Assessment Periods
(4) Keeping Years Open
5. Unilateral Relief
6. The Role of Appeals
7. Pre-Filing and Post-Filing Conferences
8. Information Required
9. Protective Measures
10. Small Case Procedure
11. Simultaneous Appeals Procedure
12. Denial of Requests
a. Basis for Denial
b. Appeal Rights
c. De Minimis Amounts
13. Processing of MAP Cases
a. Stages of Procedure in Revenue & Customs
b. Withdrawal of MAP Request
c. Effect on Domestic Proceedings
d. Court Proceedings
14. Confidentiality in Competent Authority Proceedings
a. Confidentiality of Returns and Return Information
b. Communication of Taxpayer Information Between Competent Authorities
c. Nondisclosure by Competent Authorities
15. Interest on Deficiencies and Refunds
16. Penalties
17. Repatriation of Funds After Reallocation
18. Accelerated Competent Authority Procedure
D. Arbitration
1. Background - U.K. Treaties
2. Arbitration Procedures Under Other U.K. International Agreements
3. Need for Arbitration
E. Protecting the Availability of U.K. Foreign Tax Credits
F. Application to U.K. Dependencies
6:IV. Advance Pricing Agreements
6:V. Consultation Between Competent Authorities Regarding Treaty Interpretation or Application
A. In General
B. Scope of Consultation Provisions
C. Use of Consultation Procedure
D. Legal Effect of Consultations
6:VI. Exchange of Information
A. In General
1. Exchange of Information Outside of International Agreements
2. Exchange of Information Under International Agreements
B. Exchange of Information Under Income Tax Treaties
1. Scope of Treaty Provisions
a. Taxpayers Covered
b. Taxes Covered
c. Nature of Information
2. Types of Exchanges
a. In General
b. Exchanges Regarding Changes in Tax Laws
c. Automatic Exchange of Information
d. Spontaneous Exchange of Information
e. Specific Requests for Information
f. Industry-Wide and Issue-Specific Exchange of Information
3. Simultaneous Examination Programs
a. General Purpose
b. Specific Objectives
c. Procedures
d. Disclosure of Information
4. Responding to Specific Information Requests Under Tax Treaties
a. Specificity of Request
b. Use of Revenue Powers to Obtain Information
c. Mutuality Clause
5. Business Secrets
6. Restrictions on Use and Disclosure of Exchanged Information
a. Use for Tax Purposes Only
b. Restrictions on Disclosure
c. Nondisclosure to Parliament
d. Nondisclosure to Third Countries
C. Tax Information Exchange Agreements
D. Exchange of Information Under Other International Agreements
1. European Arbitration Convention
2. Mutual Assistance Directive
6:VII. Assistance in Collection
Working Papers
Table of Worksheets
Worksheet 10 Chart Describing Articles 9 and 25 of Canadian Income Tax Treaties
Worksheet 11 Sample Article XIII (8) Agreement
Worksheet 12 Sample Article XXIX (5) Agreement
Worksheet 13 Sample Article XXIX B (5) Agreement
Worksheet 50 Administrative Arrangement for Implementation of Mutual Agreement Procedure Under U.S.-U.K. Income Tax Convention
Bibliography
OFFICIAL
Legislation and Statutes:
Chapter 1: Australia
Chapter 2: Canada
Chapter 4: Mexico
Chapter 5: The Netherlands
Chapter 6: The United Kingdom
Cases:
Rulings:
Chapter 1: Australia
Chapter 2: Canada
Chapter 3: France
Chapter 4: Mexico
Chapter 5: The Netherlands
Chapter 6: The United Kingdom
UNOFFICIAL
Model Treaties and Other Guidelines:
Books and Reports:
2007
2008
2009