On 8 May 2023, the Sri Lanka Inland Revenue Department (IRD) has published Mutual Agreement Procedure (MAP) guidelines. The guidelines provide several key aspects related to Mutual Agreement Procedure (MAP) requests in Sri Lanka. The guidelines covered include:
- Filing and initiating a MAP request: Guidelines explains the procedure for submitting a MAP request to Sri Lanka’s competent authority (CA) in specific circumstances. This suggests that taxpayers can engage in the MAP process to resolve cross-border tax disputes.
- Review and non-commencement/rejection of MAP requests: It discusses the review process of MAP requests, highlighting the possibility of non-commencement or rejection of a request. This implies that not all MAP requests automatically proceed to the negotiation stage.
- Taxpayer responsibilities during MAP proceedings: Guidelines mentions the responsibilities of taxpayers during the MAP proceedings. This suggests that taxpayers are expected to actively participate and provide necessary information or documentation during the process.
- Notification of agreement and taxpayer confirmation: It discusses the notification of an agreement reached through the MAP process and the subsequent confirmation required from the taxpayer. This implies that the taxpayer’s consent is essential for the agreement to be finalized.
- Termination or withdrawal of MAP requests: The guidelines clarify the rules governing the termination or withdrawal of MAP requests. This suggests that taxpayers may have the option to withdraw their requests.
