Her Majesty's Revenue and Customs (HMRC) published the Statement of Practice 1 (2018) to supersede the Statement of Practice 1 (2011). The new statement outlines the mutual agreement procedure (MAP) process and the use of MAP under the relevant UK Double Taxation Agreements and/or the EU Arbitration Convention (EUAC). It also outlines the UK’s approach to the role of arbitration as part of the MAP process.
MAP can be relied on by tax payers when tax consequence caused by either contracting state under a bilateral tax treaty is thought to fail to keep in accordance with the treaty, and there are no administrative or statutory dispute resolution processes in the UK that limit access to MAP. The process for concluding a MAP and arbitration issues are provided in detail. Where a solution or mutual agreement is reached under the terms of a UK Tax Treaty, it will be given effect despite anything in any enactment.
The UK has made efforts to strengthen the efficiency and effectiveness of the dispute resolution process and minimise incidences of unintended double taxation in light of recent experience and Action 14 ‘Making Dispute Resolution More Effective’ of the Base Erosion Profit Shifting (BEPS) project. The UK has committed to implementing the minimum standard in respect of preventing disputes, availability and access to MAP, resolution of MAP cases, and implementation of MAP agreements.
Source: UK Government
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):