Loading in 2 Seconds...
Loading in 2 Seconds...
The Importance of Dispute Avoidance and Resolution Mechanisms: Domestic and international. Konrad Szpadzik specialist in APA Unit Direct Taxes Department. Double taxation. Double taxation is the levying of tax by two or more jurisdictions on the same declared income
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
The Importance of Dispute Avoidance and Resolution Mechanisms: Domestic and international
specialist in APA Unit
Direct Taxes Department
Double taxation is the levying of tax by two or more jurisdictions on the same declared income
Legal double taxation - two countries levy tax on the same income of the same taxpayer (source vs. residency)
Economic double taxation refers to the taxation of two different taxpayers with respect to the same income (or capital)
new price 300
Income after audit 2200
200 WAS TAXED TWICE
The case must be presented within three years of the first notification of the action which results or is likely to result in double taxation
If the CA is not itself able to arrive at a satisfactory solution, shall endeavour to resolve the case by mutual agreement with another CA
If the CAs fail to reach an agreement within two years of the date on which the case was first submitted, they shall set up an advisory commission charged with delivering its opinion on the elimination of the double taxation in question.
of lots by the competent authorities concerned.
The advisory commission shall deliver itsopinion not later than six months from the date on which the matter was referred to it.
The advisory commission shall adopt its opinion by a simple majority of its members.
The costs of the advisory commission procedure,shall be shared equally by the Contracting States concerned.
The CAs may take a decision which deviates from the advisory commission's opinion.
If they fail to reach agreement, they are obliged to act in accordance with that opinion.
Meetings – the best way to shorten the procedure!
Around 13 arbitrations in progress
Couple cases already resolved
Increased interest in this procedure amongst taxpayers
Almost all TP cases conducted on the basis of the convention
Faster procedure than MAPs
MAP – CAs shall endeavour to resolve the case
Arbitration – CAs have to resolve the case
No advisory commission yet
Most cases with Germany
Advance Pricing Agreements
Well-prepared TP documentation
APA regulations in Poland since 2006
Unilateral, bilateral and multilateral APAs
APA as an administrative decision
Time limits to issue a decision 6 months for unilateral APA, 12 months for bilateral APA and 18 months for multilaterals.
APA application fee - 1% of the value of a transaction with certain limitations
Preliminary meetings before application
Possibility of prolonging, changing
or revoking an APAs
Monitoring of APA
Learning one another’s approach
Meetings, trainings, workshops (case studies)
12 Swietokrzyska St.
tel.: +48 22 694 48 87
fax :+48 22 694 33 31