Mutual Agreement Procedure Example

Information necessary to present a mutual agreement procedure under the European Union Arbitration Agreement When measures taken by one or more countries lead to non-DBA taxation (particularly in the area of double taxation), the subject may request a mutual agreement procedure. In Germany, the Bundeszentralamt for Steuern (BZSt) is responsible for the implementation of these procedures. If all the conditions are met, the countries concerned try to resolve the tax dispute by mutual agreement. This will generally avoid double taxation. The mutual agreement reached becomes binding only if the subject approves it in writing, waives the right of appeal and withdraws all pending appeals. The legal basis for a mutual agreement procedure is the DBA concerned. Germany has concluded DBA with more than 90 countries in the world. Most of these DBAs follow the OECD`s draft international agreement. The provisions on mutual agreement procedures are set out in Article 25 of the OECD Model Convention. Recent ABA often contains provisions that prescribe arbitration through an unsuccessful mutual agreement procedure. Principles for reviewing the distribution of income between close persons with cross-border trade relations with respect to the obligation to investigate and cooperate, corrections and mutual agreement and EU arbitration procedures (administrative procedures) Even if an arbitration procedure is requested, the EU review found that there may be many gaps in the system , including delays in or without the creation of the advisory commission and the lack of agreement on the appointment of the chair of the advisory committee. delays the appointment of the chair of the advisory committee or prevents the process from proceeding.

The memorandum contains detailed information on how reciprocal procedures and arbitration procedures are conducted in Germany. The mutual agreement procedure is designed to determine the tax debt between two countries. The partners in the process are therefore the contracting countries concerned.