By / bintoromover
Besluit Mutual Agreement Procedure
An interested party may withdraw its application during the consultation procedure by a written notification to the relevant Dutch authority. If the interested party has submitted the application in both states, notification of the withdrawal of the application must also be addressed to both states. Where the mutual consultation (and/or arbitration) procedure involves adjustments in transfer pricing between associated companies, it is possible, in certain circumstances, to conclude, following a mutual consultation procedure, an APA (bilateral or multilateral) covering the years following the years of the consultation procedure. This decision replaces the decision of 29 September 2008 no IFZ2008/248M. This decision is consistent with recent developments, including the establishment of an international standard for the settlement of minimum disputes in Action Plan 14 of the OECD`s BEPS project, the entry into force of the Arbitration Directive1 and the implementation of the MLI. The important changes from the previous decision are: finally, the decree reflects the Dutch interpretation of mutual agreement procedures, which can be interpreted differently by another country. An increasing number of tax treaties also include a provision for compulsory and compulsory arbitration in cases where taxation has not been abolished or has not been completely abolished as part of the mutual consultation procedure in violation of the convention. This provision can be regulated by the applicable tax treaty by providing for an arbitration settlement in the provision that governs the mutual consultation procedure. Or because states have accepted the MLI arbitration settlement, such as the Netherlands. As in the case of the MAP-Tiebreaker procedure, the arbitration part of the MLI applies only when both countries have accepted and ratified this part8 and if it is applicable. Arbitration agreements may include restrictions on access to arbitration. In the case of a mandatory and binding arbitration procedure, the person concerned is guaranteed that a solution will be proposed to his dispute. When an application under the CEF is accepted by the countries concerned, the bilateral phase of the dispute begins and the competent Dutch authority, in consultation with the competent authority of the other state, endeavours to resolve the dispute.
However, the competent authority may also decide to resolve the matter unilaterally (unilaterally). This request is subject to a period of six months from the receipt of the application or six months after receiving the requested additional information. This solution is implemented by a transaction agreement. In this case, all procedures based on the CEF end. Non-individuals whose place of engagement has already been established on the basis of the business relationship contained in the applicable tax treaty (whether based on the effective place of management or a POP tiebreaker) are not required to submit a (new) request to initiate a consultation procedure as long as the facts and circumstances on which the location of the agreement is determined have not changed. In such cases, taxpayers and tax authorities may consider that there is an agreement (implicit) between the competent authorities of the two countries on the place of residence.2 – the decision has been updated and editorial changes have been made in relation to the decision of 29 September 2008 No. 100/2008.