By David Ernick, Esq.
PricewaterhouseCoopers LLP, Washington, DC
The OECD Mutual Agreement Procedure Statistics for 20131 (MAP Statistics), released on November 25, 2014, show a dramatic surge in the inventory of mutual agreement procedure (MAP) cases among OECD member countries. The MAP Statistics confirm that the potential for double taxation is increasing. This is reflected most starkly in the inventory at the end of 2013 of 4,566 MAP cases. That represents a 12% increase in open cases from 2012 and a 94% increase from 2006. The unprecedented levels of MAP cases and growing concerns that the OECD Base Erosion and Profit Shifting (BEPS) project could lead to more cross-border tax disputes and double taxation highlight the urgent need for BEPS Action 14 to succeed in making dispute resolution mechanisms more effective, particularly by recommending and facilitating far more widespread adoption and use of mandatory binding arbitration.