The European Union (EU) Arbitration Convention includes a transfer pricing dispute settlement procedure for EU Member States. This procedure may apply in cases of double taxation between companies from different EU Member States. Article 25 of the United Nations Model Convention on Double Taxation between Industrialized and Developing Countries1 (United Nations Model Convention) is a very important provision for the application and application of bilateral treaties on the basis of the Model Convention. It provides for the establishment of a “cartel procedure” (POP) enabling the contracting parties to better implement the substantive provisions it contains, namely the granting of taxation rights. The MAGP is managed by the “competent authorities”, which are generally referred to in Article 3 (e) of the Treaties on the basis of the United Nations Model Convention. It is very important to make it clear who is designated as the competent authority. As a general rule, they come from the ministry or tax administration (d.b the competent division of the governments of the Contracting States). They are the persons normally responsible for the management of the contract and the mutual agreement procedure provided for in Article 25 establishes the agreed rules and principles to ensure that the functions of the Treaty are duly respected. The role of the competent authorities in Article 25 is to endeavour to resolve by common accord any difficulties or doubts arising from the application of the Treaty.
It applies in the context of all articles of the Convention. A proposal for adaptation in the event of an adversarial procedure for adjusting dispute settlement under double taxation treaties is dealt with in Article 25, which deals with the mutual agreement procedure (MAGP), which provides for a mechanism for the settlement of cross-border tax disputes related to double taxation and double non-taxation. The Committee of Experts on International Cooperation in Tax Matters has provided countries with little or no experience with a practical guide to this procedure. While building on the OECD Handbook on Effective Mutual Agreement Procedures (MEMAP), this guide is based on the provisions of the United Nations Model Convention on Double Taxation between Developed and Developing Countries (updated 2011) and seeks to present the different aspects of the mutual agreement procedure from the perspective of countries with limited experience with this procedure. the competent authorities are only required to exercise vigilance. . . .