The process of mutual unification (POP) remains the most widely used way and the best way to eliminate double taxation. The effective use of PPIs by different instruments has been of interest to the OECD and the EU for more than 20 years. According to bePS, the number of double taxes is increasing and the number of POPs continues to increase. There is a growing emphasis on ensuring better dispute resolution techniques to more effectively eliminate double taxation. This article describes some of the features of the instruments currently available. Om det har uppkommit en internationell ekonomisk dubbelbeskattning och det finns ett till-mpligt skatteavtal mellan Sverige och det andra landet kan fàretaget ans-ka om `msesidig `venskommelse (Mutual Agreement Procedure, MAP). Article 25 i OECD:s modellavtal handlar om `msesidiga `endenskommelser. (b) the competent authorities are not in a position to reach an agreement on the resolution of the case within two years from the presentation of the case to the competent authority of the other contracting State, in accordance with paragraph 2, all outstanding issues arising from the case must be subject to arbitration if the person requests it. However, these unresolved issues are not subject to arbitration if a tribunal or administrative tribunal in either state has already made a decision on these issues. Unless a person directly involved in the case accepts the reciprocal agreement by which the arbitration decision is implemented, that decision binds the two States parties and is transposed into the domestic legislation of those states, without delay. The competent authorities of the contracting states agree on how this paragraph will be applied. In August 2020, the Central Council on Direct Taxes (CBDT) issued guidelines for the Mutual Agreement Procedure (MAP), which includes the following four parts: 4.
The competent authorities of the contracting states can communicate directly with each other, including through a joint commission composed of themselves or their representatives, in order to reach an agreement within the meaning of the previous paragraphs. Within the EU, the EU Arbitration Convention came into force on 1 January 1995 as an instrument that promised to allow the elimination of double taxation between Member States. It is important that it provides for a binding and binding arbitration mechanism that eliminates double taxation, with the advice of an independent advisory body, if the competent authorities fail to reach an agreement after two years. This went beyond the existing bilateral agreements at the time, which simply required the competent authorities to make their “best efforts” to eliminate double taxation. The map article of the Indian Income Tax Convention is based on Article 25 of the OECD Model Tax Convention. An application for a POPs may be made by a taxpayer if it takes into account the actions of the tax authorities of one or both contractors or results in a tax that does not comply with the applicable tax treaty. This procedure allows the competent authorities of the contracting states to settle disputes or difficulties in interpreting or applying tax treaties on a consensual basis.