HMRC has published a statement of practice (SP1/2018) describing the UK’s approach to the mutual agreement procedure (MAP) under the UK’s double tax treaties, or under the EU Arbitration Convention (EUAC). This supersedes statement of practice SP1/2011.
The MAP is designed to be used by taxpayers who consider that the actions of one or both of the tax administrations in the countries that are parties to the relevant double tax treaty will result in tax that is not in accordance with the treaty.
The new statement of practice reflects the outcomes of BEPS Action 14 (dispute resolution) and is designed to be read together with HMRC’s International Manual at INTM42300 onwards. The statement covers:
the purpose of the MAP and who is eligible to make a MAP request;
how to make a MAP request (the statement confirms that there is no set form to use when making a MAP request in the UK, although the relevant treaty may require certain information to be provided);
time limits for making a MAP request (the statutory time limit of six years following the end of the period to which the case relates may be extended by the treaty);
how relief may be granted if the MAP request is successful; and
arbitration (whether under a double tax treaty, the BEPS multilateral instrument, or the EUAC).
HMRC has published a statement of practice (SP1/2018) describing the UK’s approach to the mutual agreement procedure (MAP) under the UK’s double tax treaties, or under the EU Arbitration Convention (EUAC). This supersedes statement of practice SP1/2011.
The MAP is designed to be used by taxpayers who consider that the actions of one or both of the tax administrations in the countries that are parties to the relevant double tax treaty will result in tax that is not in accordance with the treaty.
The new statement of practice reflects the outcomes of BEPS Action 14 (dispute resolution) and is designed to be read together with HMRC’s International Manual at INTM42300 onwards. The statement covers:
the purpose of the MAP and who is eligible to make a MAP request;
how to make a MAP request (the statement confirms that there is no set form to use when making a MAP request in the UK, although the relevant treaty may require certain information to be provided);
time limits for making a MAP request (the statutory time limit of six years following the end of the period to which the case relates may be extended by the treaty);
how relief may be granted if the MAP request is successful; and
arbitration (whether under a double tax treaty, the BEPS multilateral instrument, or the EUAC).
