The Bahamas’ Finance Ministry has published guidance on the mutual agreement procedure (MAP) framework set out in the Tax Information Exchange Agreement between The Bahamas and Japan.
MAP is aimed at resolving any difficulties or doubts arising as to the interpretation or application of a tax treaty.
The guidance discusses several aspects of the MAP framework including who can request a MAP, how to initiate a MAP request, the processing of MAP requests, and implementation of the agreement.
The guidance states that the Competent Authority will strive to resolve cases in a timely manner and keep the taxpayer informed of the status of their request on an ongoing basis.
Currently, there are no advanced pricing agreements (APAs) in place in The Bahamas and the guidance does not deal with applications for APAs.