Overall, it is clear that the MLI extends taxpayers` access to three years, both in terms of extending the period during which taxpayers must initiate a POB period, provides an effective two-year period for the relevant authorities to resolve a case (after that date, it may be subject to arbitration). The MLI has led to a greater homogeneity of approach on key issues such as arbitration and, above all, the adoption of a single map article for covered tax treaties. There are clear and often long delays in applying for the POP. In particular, Article 16, paragraph 1, second sentence, provides that the MAP case must be brought within a specified period of time, i.e. less than three years from the first notification of the tax measure, and not in accordance with the provisions of a secure tax treaty. This means that taxpayers are not able to present their arguments within three years of the first notification of the tax measure leading to taxation, in accordance with the provisions of the secured tax treaty. The first return is generally considered the final assessment at the end of a tax collection or other. Historically, domestic tax remedies have been seen as the first approach to resolving international tax or transfer pricing disputes. Taxpayers have often initiated mutual agreement (POP) procedures to resolve a dispute and ensure security. The POP essentially offered a dispute resolution mechanism between the public authorities (amicable procedure), with the competent authorities striving to settle disputes relating to tax contracts on a consensual basis. OECD: www.oecd.org/tax/dispute/ www.oecd.org/tax/treaties/ Given the POP resolution, Part VI of the MLI (Articles 18-26 included) refers to the mandatory arbitration procedure for MAP files. At the time of the final report, several legal systems committed to implementing mandatory POPs arbitration procedures in their bilateral tax treaties.
This section is practically optional. Procedure of Mutual Agreement (MAP) – is the procedure implemented within the framework of international treaties and applied by the competent authorities in consultation with the interpretation and application of the provisions of the tax treaties or the Convention on the Elimination of double taxation in relation to the adjustment of the profits of associated companies (arbitration agreement) when a tax subject is taxed outside the scope of the tax treaties or the convention to deal with the issue of the elimination of double taxation. In particular, Article 19 of the compulsory arbitration procedure must be mandatory if the competent authorities are unable to reach an agreement on the settlement of a case within two years of their start.