Mutual Agreement Procedure Statistics for 2016
Mutual agreement procedures (MAPs) are becoming more and more important in today`s global economy. With companies operating in multiple countries and facing complex tax issues, MAPs are essential for resolving disputes between taxpayers and tax administrations. In this article, we will take a closer look at the mutual agreement procedure statistics for 2016.
According to the latest available data from the Organisation for Economic Co-operation and Development (OECD), the number of MAP cases increased by 6 percent in 2016, with a total of 2,058 cases initiated globally. The majority of these cases (55 percent) were related to transfer pricing, while the remaining 45 percent were related to other issues, such as the interpretation and application of tax treaties.
The countries that initiated the largest number of MAP cases in 2016 were the United States (618 cases), Germany (228 cases), and the United Kingdom (164 cases). These countries were followed by France, Canada, and Australia, which each initiated over 100 cases.
The good news is that the number of MAP cases that were successfully resolved also increased in 2016. Out of the 2,058 cases initiated, 1,763 cases were closed during the year, with 64 percent of them being resolved through agreements between the taxpayers and the tax administrations. This is an improvement from 2015 when only 57 percent of cases were resolved through agreements.
The average time to complete a MAP case in 2016 was 24 months, which is the same as in 2015. However, there were significant differences between countries. For example, China and Russia had an average completion time of over 30 months, while the United States and the United Kingdom had an average completion time of less than 20 months.
It is important to note that MAPs are not only for large multinational companies. Small and medium-sized businesses can also benefit from MAPs when facing cross-border disputes. The OECD has emphasized the importance of ensuring that MAPs are accessible to all taxpayers, regardless of their size.
In conclusion, the mutual agreement procedure statistics for 2016 show that MAPs are becoming more important in today`s global economy. While the number of cases is increasing, so is the number of cases that are successfully resolved. The average completion time remains a challenge, but there is room for improvement. Overall, MAPs are an essential tool for resolving cross-border tax disputes and ensuring a fair and efficient tax system.