The revised guidelines clearly show that the United Kingdom is in favour of the application of arbitration procedures to eliminate double taxation if the relevant authorities have not been able to reach an agreement during the POPs negotiations. A map procedure can put pressure on the tax authorities with which taxpayers are in dispute, under pressure from another tax authority. Another tax authority on your side in any dispute can help you find an adequate solution to a dispute. Where it is no longer possible to implement the mutual agreement automatically in an evaluation, the execution is ensured by an enforcement decision. The ITAIA contains a new legal basis that allows tax authorities to implement POP agreements through such an implementation decision. The implementation of the agreement by such a specific enforcement decision is consistent with the approach of Article 25, paragraph 1, oecd-mc, which assigns the POP a role independent of national procedures. During the signing session of the cycle, the development organization and the company meet again to sign the document for the cycle. Each person on the team will sign this document that reflects their understanding of the team`s commitments. This process should be given the full formality of a contract, as it is, a six-week agreement between the company and the development agency. The UK`s most recent tax treaties follow Article 25 of the OECD Model Convention, which provides that a person will submit his case to the appropriate authority within three years of the first notification of the double taxation measure or which could result in double taxation. Since the first notification may take place after the aforementioned six years has expired, the section of the tax contract concerned may extend this limit.
You don`t have to wait for the first notification before submitting an appeal request to MAP. The SIF will inform the Swiss tax authorities of the assessment of the POPs application. If the POP can affect taxation in Switzerland, the tax authorities will have the right to rule on the case. The opinion of the tax authorities is an important element of Switzerland`s position vis-à-vis a contracting state, as the tax authorities are the best familiar with the facts of a case.