Australia Updates Mutual Agreement Procedure Guidance

Australia Updates Mutual Agreement Procedure Guidance

The Australian Taxation Office has updated its guidance on the mutual agreement procedure (MAP) framework contained in tax treaties to resolve disputes.

The updated MAP guidance reflects both changes to legislation and recommendations made under the OECD’s base erosion and profit shifting project.

The new MAP guidance covers both transfer pricing and non-transfer pricing cases.

The new guidance provides updated information on information requirements for MAP requests; contact details for lodging details for MAP requests; MAPs arising from self-amendments; multilateral MAPs; the role of ATO staff in the MAP process; the availability of MAP in cases involving Australia’s general anti-avoidance rules; and mandatory binding arbitration.

The new guidance represents an update on Taxation Ruling TR 2000/16: Income tax: international transfer pricing and profit reallocation adjustments, relief from double taxation and the Mutual Agreement Procedure, which has been withdrawn.