959AW Mutual agreement procedures

Summary

This section ensures that taxpayers who seek redress by way of a request for a mutual agreement procedure are afforded the same treatment as that afforded to taxpayers pursuing domestic appeals. This is achieved by providing that an assessment will not be final and conclusive in circumstances where a taxpayer makes a MAP request under a double taxation agreement, the EU Arbitration Convention or under the European Union (Tax Dispute Resolution Mechanisms) Regulations 2019 (‘the 2019 Regulations’).

Detail

This section provides that, notwithstanding section 959AF, an assessment or an amended assessment will not be final and conclusive where, within 30 days of the date of the notice of assessment, the person on whom the assessment has been made pursues redress by way of a request for a mutual agreement under a double taxation agreement, the EU Arbitration Convention or in circumstances where the aggrieved taxpayer submits a complaint under the 2019 Regulations.

The time limit for submitting a request for MAP assistance under a DTA is determined by the relevant DTA. Generally, Ireland’s DTAs follow Article 25 of the Model Treaty Convention and provide that a request for MAP assistance must be submitted within 3 years from the first notification of the action resulting in taxation not in accordance with the convention. However, some treaties provide for a different time period.

Relevant Date: Finance Act 2021