3 How MAP works
3.8. What happens when an agreement is reached?
When the competent authorities resolve a MAP case, this resolution should be confirmed by an exchange of letters. Since some MAP agreements can be rather complicated, it is best to exchange these letters soon after the conclusion of the discussions to ensure an accurate reflection of the terms agreed upon. At this time it would be appropriate for the competent authorities to agree upon a tentative schedule for the implementation of the agreement.
In addition, competent authorities are encouraged to communicate the terms of the resolution to the taxpayer as soon as possible. This communication may take place prior to the exchange of letters if mutually agreed to by the competent authorities.
If the terms and conditions of the resolution are not satisfactory to the taxpayer, the taxpayer may be entitled to withdraw from the MAP process and pursue other domestic redress mechanisms still available. If the terms are satisfactory, the taxpayer usually accepts the MAP results in writing and agrees to withdraw its domestic objections (if filed) or to refrain from seeking any further recourse on the same issue and years.
Competent authorities should not implement the resolution under the MAP process with a taxpayer until the exchange of letters between competent authorities has occurred.
Once letters have been exchanged, and where required the taxpayer has accepted the resolution, a competent authority should give, or arrange to give, it effect in its jurisdiction.