OECD Releases MAP Statistics For 2018

In October 2015, the Organization for Economic Cooperation and Development (OECD) finalized its report titled Action 14: Making Dispute Resolution Mechanisms More Effective. As part of Action 14, the members of the Inclusive Framework on BEPS (IF)¹ committed to implement a minimum standard to ensure that treaty-related disputes were resolved in a timely, effective, and efficient manner. Mutual Agreement Procedures (MAP) offer an important process for purposes of resolving double tax disputes arising from international tax matters – many of which will relate to transfer pricing. Through MAPs, the relevant taxing authorities (operating under the provisions of tax treaties between the countries involved) are supposed to arrive at a joint agreement regarding the allocation of profits between tax jurisdictions.