The Organisation for Economic Cooperation and Development (OECD) released the latest BEPS Action 14 Mutual Agreement Procedure peer review results on 16 September 2024. This includes Stage 1 peer review reports on dispute resolution through the simplified process for Albania, Antigua and Barbuda, Belize, Botswana, Colombia, Cook Islands, Costa Rica, Dominican Republic, Egypt, Jamaica, Jordan, Lithuania, Mauritius, Nigeria, North Macedonia, Pakistan, Serbia, Seychelles, Sri Lanka, and Zambia.
Following the successful completion of peer reviews under the initial BEPS Action 14 Assessment Methodology, the Inclusive Framework on BEPS agreed upon a new Assessment Methodology in December 2022 for continuing the robust peer review process that seeks to increase efficiencies and improve the timeliness of the resolution of double taxation disputes.
The new Assessment Methodology for the Action 14 peer reviews includes both a simplified peer review process, for jurisdictions that do not have “meaningful MAP experience”, and a full peer review process, for jurisdictions considered to have “meaningful MAP experience”.
Work on this new process for continued monitoring is now well underway, with the release of 20 new peer review reports under the simplified process for the following jurisdictions (Stage 1 Batches 1 and 2): Albania, Antigua and Barbuda, Belize, Botswana, Colombia, Cook Islands, Costa Rica, Dominican Republic, Egypt, Jamaica, Jordan, Lithuania, Mauritius, Nigeria, North Macedonia, Pakistan, Serbia, Seychelles, Sri Lanka, and Zambia.
The simplified peer review process was put in place with the main objective of helping jurisdictions with no or low MAP experience to set up a more robust MAP programme for a possible increase in cases in the future.
The results from the first two batches of the simplified peer review demonstrate that most jurisdictions that are part of the simplified peer review process either have or are eager to put in place a policy framework for MAP as well as a well-functioning MAP programme and are willing to take the necessary measures to achieve the efficient, effective and timely resolution of disputes.
Highlights include:
- The Multilateral Instrument was signed by Albania, Belize, Colombia, Costa Rica, Egypt, Jamaica, Jordan, Lithuania, Mauritius, Nigeria, North Macedonia, Pakistan, Serbia and Seychelles, with the instrument already being ratified by Albania, Belize, Costa Rica, Egypt, Jordan, Lithuania, Mauritius, Pakistan, Serbia and Seychelles, which will bring a substantial number of their treaties in line with the Action 14 minimum standard. In addition, there are bilateral negotiations either ongoing or concluded.
- Albania, Costa Rica, Colombia, Lithuania, Nigeria and Sri Lanka have a documented bilateral notification/consultation process that they apply in cases where an objection is considered as being not justified by their competent authority.
- Costa Rica and Nigeria either closed their MAP cases within the pursued average time of 24 months or have a competent authority that is considered adequately resourced, whereas Antigua & Barbuda, Belize, Cook Islands and Seychelles had no MAP experience.
- Albania, Costa Rica, Dominican Republic, Jamaica, Jordan, Mauritius, Pakistan, Zambia, Antigua and Barbuda, Colombia, Lithuania, Nigeria, Seychelles and Sri Lanka ensure that MAP agreements can always be implemented notwithstanding domestic time limits.
- Colombia, Costa Rica, Dominican Republic, Lithuania, Mauritius, Nigeria, Serbia, Sri Lanka and Zambia have issued or updated their MAP guidance.
