In line with the Forum on Tax Administration’s tax certainty agenda, the OECD on Wednesday 1 February published a manual on the handling of multilateral mutual agreement procedures and advance pricing arrangements, abbreviated as MoMA.
The purpose of the mutual agreement procedure is to resolve situations of double taxation or taxation not in accordance with a bilateral tax treaty. It is a non-judicial procedure, independent of the remedies available under domestic law.
These procedures and agreements provide greater tax certainty to both taxpayers and tax administrations when different parts of the same transaction or arrangement involving a multinational enterprise are covered by several bilateral tax treaties. However, most jurisdictions have only limited experience of coordination.
It is therefore intended as a guide to multilateral processes, both from a legal and procedural point of view, and suggests different approaches based on the practices of jurisdictions, without imposing a set of binding rules.
It will enable tax administrations to consider whether the implementation of these procedures is appropriate and to consider whether the guidance it contains can be incorporated into their national guidance to provide greater clarity.
To consult the MoMa: https://aeur.eu/f/564 (Original version in French by Anne Damiani)