2 Making a MAP request
2.1. What is a MAP request?
Where a person considers that the actions of one or both countries’ tax administrations result or will result in taxation not in accordance with a tax convention, the person may request competent authority assistance under the MAP article of the relevant tax convention. In most cases, such an action is an adjustment to, or a formal written proposal to adjust, income related to an issue or transaction to which the person is a party.
Generally, taxpayers must approach the competent authority of their country of residence to request relief under a tax convention. In cases where an adjustment is made that affects related parties in both jurisdictions (e.g., a transfer pricing adjustment by one of the countries to the income or expense of one company from a transaction entered into with a related company in the other country), it is often advisable for each taxpayer to make a separate request for assistance to the competent authority of the country in which it is resident. If the taxpayer is a non-resident of the relevant countries but is entitled to a treaty benefit based on nationality in one of the countries (such as protection under a provision comparable to Article 24(1) (Non Discrimination) of the OECD Model Tax Convention), then a request may be made to the country in which it is a national.
Some conventions are more flexible and allow a taxpayer to present a request to the competent authority of either contracting state. Taxpayers should refer to the text of the particular MAP article to determine their entitlement to present a request to a particular competent authority.