As published on tax-news.com, Wednesday 13 January, 2021.
On November 17, 2020, Guernsey's Revenue Service released updated guidance on Mutual Agreement Procedure dispute resolution.
The new guidance, titled "Guidelines for requesting Mutual Agreement Procedure ("MAP") assistance in Guernsey", has been updated following the entry into force of the BEPS multilateral instrument (MLI) for Guernsey.
The previous version of the guide was prepared prior to the entry into effect of the MLI for Guernsey from June 1, 2019.
The BEPS MLI is intended to enable countries to incorporate amendments into their double tax agreements to tackle tax base erosion and profit shifting (BEPS) – namely to counter hybrid mismatch arrangements, treaty abuse, and the avoidance of permanent establishment status, and to improve how a territory resolves tax disputes.
As in the previous version, the guidance explains, among other things, the purpose of double tax agreements; an overview of the MAP; how to make a MAP request and eligibility requirements; and an overview of the MAP process and disclosure requirements.