Mutual Agreement Procedure in Ukraine

• Authors: Liubov Kasianenko , Irina Umrykhina

Abstracts

EN

Mutual agreement procedure (MAP) is an important instrument for resolving disputes on taxation not in accordance with the provisions of double taxation agreements. Nevertheless, its potential was not applied widely neither by taxpayers nor by the competent authorities in Ukraine. In 2020, the national legislator introduced changes to the Tax Code of Ukraine that might positively impact on the practice of application of MAP in Ukraine and make it more certain and comfortable for taxpayers and tax authorities. The taxpayers received the right to initiate MAP between competent authorities of contracting states in case of taxation not in accordance with the provisions of double taxation treaties. At the same time, the new legal provisions have few deficiencies in comparison with the international standards of international taxation included in the OECD MTC and its commentaries. Based on the results of the comparative analysis, the amendments to the Tax Code of Ukraine are proposed in the article.

Keywords

EN

tax dispute resolution; double taxation; interpretation; domestic implementation; international treaties

• Publisher: Wydawnictwo Adam Marszałek
• Journal: Krakowskie Studia Małopolskie
• Year: 2021
• Volume: 2(30)
• Pages: 51-65

Dates

published

2021

Contributors

author

Liubov Kasianenko

• University of the State Fiscal Service of Ukraine

author

Irina Umrykhina

• University of the State Fiscal Service of Ukraine

References

• Altman Z.-D. (2005), Dispute Resolution under Tax Treaties. Amsterdam: IBFD.
• Christians A. (2012), How Nations Share. Indiana Law Journal, Vol. 87, pp. 1407–1453.
• Dimitropoulou C., Govind S., Turcan L. (2018), Applying Modern, Disrup¬tive Technologies to Improve the Effectiveness of Tax Treaty Dispute Resolution: Part 1. Intertax, Vol. 46, Issue 11, pp. 856–872.
• Ismer R. (2015), Article 25. Mutual Agreement Procedure. In: Klaus Vogel on Double Taxation Convention. Ed. by E. Reimer & A. Rust.4th ed., Vol. 2. Alphen aan den Rijn: Wolters Kluwer.
• Karmalita M., Kharchenko A. (2018), Vzaemouzgodzhuvalna procedura jak pravovyi instrument vzaemodii platnukiv podatkiv ta ta kontrolju¬juchih orgniv [Mutual agreement procedure as a legal instrument of interaction between taxpayers and controlling authorities]. Pravo ta derzhavne upravlinnya, No. 1, Vol. 1, pp. 118–122 [in Ukrainian]
• Kim S. (2014), Study on Arbitration as Institution of International Tax Dis¬pute Resolution: Within the Ambit of MAP as Suggested by the OECD. Seoul: Seoul National University School of Law.
• List Derjavnoi Podatkovoyi Administracii Ukrayiny [Letter of State Tax Ad¬ministration of Ukraine], 951/0/61–12/15–1415, 28 August 2012. URL: http://law.dt-kt.com/lyst-derzhavnoyi-podatkovoyi-slu¬zhby-ukr-12/ (Last accessed: 30.04.2021) [in Ukrainian]
• Lombardo M. (2008), The Mutual Agreement Procedure (Art. 25 OECD MC) – A Tool to Overcome Interpretation problems? In: Fundamental Issues and Practical Problems in Tax Treaty Interpretation. Eds. by M. Schilcher& P. Weninger. Wien: LINDE.
• Minin O., Minina M. (2016), Mekhanizmy zastosuvannya i obmezhenist priorytetnosti okremyh norm podatkovogo zakonodavstva [Mecha¬nisms of application and limits of hierarchy of some provisions of tax legislation]. Juridichnyi zhurnal, № 1–2, pp. 104–106 [in Ukrainian]
• OECD (2007), Manual of Effective Mutual Agreement Procedures (MEMAP). February 2007 Version. Paris: Centre for Tax Policy and Administration.
• OECD (2017), Background Brief: Inclusive Framework on BEPS, Janu¬ary 2017. Paris, OECD. URL: http://www.oecd.org/tax/beps/back-ground-brief-inclusive-framework-for-beps-implementation.pdf (Last accessed: 30.04.2021)
• OECD (2017), Model Tax Convention on Income and on Capital. Condensed Version (as it read on 21 November 2017). Paris: OECD Publishing.
• Rishennya Kyivskogo Administratyvnogo Apelyaciynogo Sudu [Decision of the Kyiv Administrative Court of Appeal], case No. 2а-7088/12/2670, 4 October 2012. URL: http://reyestr.court.gov.ua/Review/26335661 (Last accessed: 30.04.2021) [in Ukrainian]
• Rishennya Odeskogo Apelyaciynogo Administrativnogo Sudu [Deci¬sion of the Odesa Administrative Court of Appeal], case No. 815/5010/17, 28 February 2018. URL: http://reyestr.court.gov.ua/Review/72647386 (Last accessed: 30.04.2021) [in Ukrainian]
• Rishennya Okruzhnogo Administrativnogo Sudu mista Kyiv [Decision of the District Administrative Court of Kyiv], case No. 826/10513/17, 25 April 2019. URL: https://reyestr.court.gov.ua/Review/81428651 (Last accessed: 30.04.2021).
• Rosca I.-F., Rust A. (2020), Articles 10(2) and 11 (2) of the OECD Model Tax Convention: Direct Applicability, Refund and the Competence of Competent Authorities to Settle the Mode of Application In: Tax Trea¬ties and Procedural Law. Eds. by G. Kofler, M. Land, P. Pistone, A. Rust, J. Schuch, K. Sies & C. Staringer. Amsterdam: IBFD.
• Selezen P. (2018), Vzaemouzgodjuvalna procedura u konteksti kampanii z protydii rozmyvannju bazy opodatkuvannya ta peremischennya pry¬butkiv [Mutual agreement procedure in the context of the campaign on counteraction to base erosion and profit shifting]. Pravo i suspilst¬vo, Vol. 3, pp. 313–319 [in Ukrainian]
• Sidhu P.-K. (2014), Is the Mutual Agreement Procedure Past Its “Best- Before Date” and Does the Future of Tax Dispute Resolution Lie in Mediation and Arbitration? Bulletin for International Taxation, Vol. 68, No. 11, рp. 590–605.

Identifiers

DOI

10.15804/ksm20210204

Biblioteka Nauki

1930589