Tuesday, December 31, 2019
The Irish Revenue has updated its guidelines on requesting Mutual Agreement Procedure (MAP) assistance in Ireland.
The updates have been made to Tax and Duty Manual (TDM) Part 35-02-08. They reflect the ratification in Ireland of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), which entered into force for Ireland on May 1, 2019.
The MLI allows countries to modify their existing tax treaties to include measures developed under the OECD/G20 BEPS project without having to individually renegotiate these treaties. Jurisdictions that sign the MLI must identify which of their treaties they wish the MLI to apply to and modify.
The TDM explains that taxpayers can request assistance the Irish Revenue to resolve disputes arising from taxation not in accordance with the provisions of the relevant DTA and/or the EU Arbitration Convention. Taxpayers may request MAP assistance under the terms of the relevant DTA – in conjunction with the relevant articles of the MLI, where applicable – and/or the EU Arbitration Convention. MAP assistance is provided by Revenue's International Tax Division.
The TDM states that one of the provisions of the MLI, which Ireland has adopted, allows taxpayers to approach the competent authority of either jurisdiction to request MAP assistance under a DTA. The new rule will only apply in treaties where Ireland's treaty partner has also adopted the provision and ratified the MLI.
Revenue advised taxpayers to consult the relevant DTA and the relevant MLI provisions when making a MAP request.