By Alex Cooper
On February 20, 2018, the UK Government published “Statement of Practice 1 (2018)” on the country’s mutual agreement procedure (MAP) framework. The Statement supersedes “Statement of Practice 1 (2011).”
The Statement outlines the MAP process and the use of MAP under the relevant UK tax treaties and the EU Arbitration Convention. The Statement discusses key issues relating to the MAP framework including eligibility for MAP, how to make MAP requests, time limit for submitting MAP requests, and the reliefs available.
The Statement notes that, under newer tax treaties, the taxpayer can make a request for MAP assistance to the Competent Authority of either country. There are no administrative or statutory dispute resolution processes in the UK that limit access to MAP, the Statement notes.
The Statement also outlines the UK’s approach to the role of arbitration as part of the MAP process. It notes that the UK has committed to mandatory binding arbitration through the OECD’s Multilateral Instrument on base erosion and profit shifting (BEPS).
The Statement notes: “The UK has made efforts to strengthen the efficiency and effectiveness of the dispute resolution process and minimize incidences of unintended double taxation in light of recent experience and developments, in particular BEPS Action 14. The UK has committed to implementing the minimum standard in respect of preventing disputes, availability and access to MAP, resolution of MAP cases, and implementation of MAP agreements.”
The author is with TP News