Related undertakings, as defined for the purposes of POPs, which face double taxation as a result of a transfer pricing control carried out in a Member State, may submit the case to the competent national authority. If the Commission concludes that there is double taxation and that there is no national relief, it must initiate a MAGP with the other competent authority in accordance with the tax map treaty and in accordance with the OECD guidelines. An overview of the new provisions of the Senegalese transfer pricing tax law. The latest developments in France indicate that the tax authorities are putting the issue of transfer pricing at the top of their agenda, as is currently the case at the European level. Messages are made on several fronts. A transfer pricing control can be effectively managed in order to strike the right balance between the FTA, which must tackle an unbalanced transaction with a clear justification, and the taxable person who is tasked with providing information. In the context of an audit, the ESTV may use two procedures, a general procedure under Article L 10, and the special transfer pricing request provided for in Article L 13 B. § L 10 governs the information procedure for all audits. Taxable persons are generally required to provide information, justifications and explanations of all aspects or transactions affecting taxable profit or loss about which the ESTV may inquire. Taxpayers must provide the requested information within 30 days of the request, unless otherwise agreed (as is often the case with transfer pricing audits).
Taxpayers should expect to receive a transfer pricing questionnaire and be cautious in their responses. Tax authorities may not always agree with your company`s pricing agreements and policies, which can lead to audits and adjustments. Economic double taxation may also occur when adjustments are made in one country without appropriate adaptation in the other relevant legal order. The uncertainties associated with these issues can make it difficult for your group to manage their effective tax rate and result in greater tax risk than expected. Taxable persons who, after a transfer pricing revaluation, are either under the EU Arbitration Convention (90/436/EEC, 23. 1990) or a double taxation convention, double taxation, benefit from a suspension of the collection of tax throughout the domestic law procedure (PTC, section L.189 A). The suspension shall apply to applications lodged after 1 January 2005. In practice, the collection of tax is suspended until the third month following the date on which the competent authorities notified their decision to the taxable person.
The European authorities have decided to reduce the transfer pricing compliance burden and the double taxation of the past. Beyond the reactivation of the EU Arbitration Agreement, alternative dispute resolution and dispute resolution procedures are under consideration.23 Thus, the JTPF is ready to encourage the use of similar approaches for aPA programmes in terms of scope, documentation, duration, transparency, etc. The diversity of rules makes bilateral and multilateral APAs more cumbersome and less attractive to taxpayers. The agenda also provides for prior authorisation or agreement between the relevant tax authorities for reasonable transfer pricing. . . .