OECD releases MAP arbitration profiles of 30 tax jurisdictions

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OECD releases MAP arbitration profiles

The Arbitration Profiles have been developed to provide taxpayers with additional information on the application of Part VI of the MLI for each jurisdiction choosing to apply that Part. The Arbitration Profiles also allow those jurisdictions to make publicly available clarifications on their position on the MLI Arbitration.OECD releases MAP arbitration profiles of 30 tax jurisdictions

The OECD has published profiles of 30 tax jurisdictions applying mandatory binding arbitration of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).

Part VI of the MLI allows jurisdictions choosing to apply it to adopt mandatory binding arbitration for the resolution of tax treaty disputes.

The Arbitration Profiles have been developed to provide taxpayers with additional information on the application of Part VI of the MLI for each jurisdiction choosing to apply that Part. The Arbitration Profiles also allow those jurisdictions to make publicly available clarifications on their position on the MLI Arbitration.

Each of the Arbitration Profiles includes:

  • Links to the competent authority agreements (CAAs) concluded by each jurisdiction choosing to apply Part VI of the MLI to settle the mode of application of that Part (which the OECD, as the Depositary of the MLI, needs to maintain and make publicly available);
  • Lists of certain reservations made by those jurisdictions, governing the scope of cases eligible for arbitration; and
  • Further clarifications that those jurisdictions wish to make publicly available on their position on the MLI arbitration.

The MLI so far covers 95 jurisdictions and has been ratified by 64 jurisdictions. It is the first multilateral treaty of its kind, allowing jurisdictions to swiftly transpose results from the BEPS project into their existing tax treaties, transforming the way tax treaties are modified.

The author is Alex Hunter, Editor, TP News. He oversees and updates the publication and also  regularly writes news stories about transfer pricing and international tax law. Alex is reachable at editor@transferpricingnews.com