Competent Authority

Double taxation cases and exchange of information:

Director, Competent Authority Services Division
Canada Revenue Agency
5th Floor Canada Building
344 Slater Street
Ottawa, Ontario K1A 0L5
CANADA
Tel: 1 (613) 941 7831 FAX: 1 (613) 990 7370

Treaty interpretation and other treaty issues:

Director, International, Provincial and Strategic Policy Division
Canada Revenue Agency
20th Floor, Tower A
320 Queen Street
Ottawa, Ontario, K1A 0L5
CANADA
Tel: 1 (613) 954-0402 FAX: 1(613) 941-5932 

Organization

MAP related to specific taxpayers, APAs, EOI and Administrative matters:

Competent Authority Services Division, Canada Revenue Agency

Policy related to MAP and treaty negotiation:
International, Provincial and Strategic Policy Division, Canada Revenue Agency

Scope of MAP & MAP APA

- Relief of double taxation (specific cases): Competent Authority Services Division.

- Application or interpretation of particular tax treaty: International, Provincial and Strategic Policy Division

Domestic guidelines & administrative arrangements

MAP procedures: Information Circular 71- 17R5 Guidance on Competent Authority Assistance under Canada's Tax Conventions (IC 71-17R5)
(http://www.cra-arc.gc.ca/E/pub/tp/ic71-17r5/README.html)

APA procedures: Information Circular 94-4R International Transfer Pricing: Advance Pricing Arrangements (IC 94-4R) (http://www.cra-arc.gc.ca/E/pub/tp/ic94-4r/ic94-4r-e.html)

APA procedures for Small Business: Information Circular 94-4R(SR) Advance Pricing Arrangements for Small Business (IC 94-4R(SR))
(http://www.cra-arc.gc.ca/E/pub/tp/ic94-4rsr/README.html)

TP Guidance: Information Circular 87-2R International Transfer Pricing (IC 87-2R) (http://www.cra-arc.gc.ca/E/pub/tp/ic87-2r/README.html) 

Time for filing

MAP: Depends on the specific treaty and/or domestic time limitations
(IC 71-17R5)

APA: Pre-filing meeting to be held within 180 days after the end of the first taxation year to be covered by APA. (IC 94-4R, paragraph 17)

Form of request

MAP: No specific form

APA: No specific form

Documentation requirement

MAP
- Required information is provided in paragraph 19 of IC 71-17R5.

APA
- Guidance is provided in Appendix IV of IC 94-4R.

User fees

MAP: None

APA: Travel-related expenses (such as air fare and lodging) necessary to conduct site visits and negotiate with other competent authorities. If an independent expert is necessary, fees for this person will usually be borne by the taxpayer.

Tax collection / penalty / interest

• Collection: There are no specific provisions under our conventions related to collection when a case is being considered under the MAP. The Canada Revenue Agency may consider security in lieu of payment for taxes owed by corporations when the corporation seeks competent authority assistance. A reduction in the amount of security is possible when a corporation files a protective appeal and then puts the appeal on hold while pursuing the MAP process. Taxpayers requesting consideration on collection matters should contact the Taxpayer Services and Debt Management Branch. (See paragraphs 46-49 of IC 71-17R5).

• Interest or penalty: Competent authority does not have the authority under our conventions to waive interest or penalties resulting from reassessment.

Other dispute resolution mechanisms

• Mandatory arbitration provision with:

a) the United States (entered into force since December 15, 2008); and

b) Switzerland - procedures not yet established.

• Voluntary arbitration provision with the Netherlands (procedures have not been established).

• Possibility of arbitration in some treaties negotiated since 1995 upon exchange of diplomatic notes (none have been activated as of March 31, 2012).

Government Website