OECD Considers Clarifying Access to MAPs in Model Tax Treaty

The OECD is working on possibly expanding the types of tax adjustments that should be subject to mutual agreement procedures in the organization’s model treaty, an official said Tuesday.

A new project at the organization is looking to address instances where tax authorities block a company’s access to a MAP—a dispute resolution process—because the dispute at issue isn’t specifically identified as a transfer pricing issue, and to clarify what is covered under Article 9 of the OECD’s model tax treaty.

Article 9 governs the treatment of “associated enterprises,” or related companies, and establishes the arms-length principle for transfer pricing—the rule ...