OECD/G20 Base Erosion and Profit Shifting Project Making Dispute Resolution More Effective - MAP Peer Review Report, Austria (Stage 2) Inclusive Framework on BEPS: Action 14

Under Action 14, countries have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The minimum standard is complemented by a set of best practices. The peer review process is conducted in two stages. Stage 1 assesses countries against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' stage 1 peer review report. This report reflects the outcome of the stage 2 peer monitoring of the implementation of the Action 14 Minimum Standard by Austria, which is accompanied by a document addressing the implementation of best practices. Table of contents Foreword Abbreviations and acronyms Executive summary Introduction Notes Reference Part A. Preventing disputes [A.1] Include Article 25(3), first sentence, of the OECD Model Tax Convention in tax treaties [A.2] Provide roll-back of bilateral APAs in appropriate cases Notes References Part B. Availability and access to MAP [B.1] Include Article 25(1) of the OECD Model Tax Convention in tax treaties [B.2] Allow submission of MAP requests to the competent authority of either treaty partner, or, alternatively, introduce a bilateral consultation or notification process [B.3] Provide access to MAP in transfer pricing cases [B.4] Provide access to MAP in relation to the application of anti-abuse provisions [B.5] Provide access to MAP in cases of audit settlements [B.6] Provide access to MAP if required information is submitted [B.7] Include Article 25(3), second sentence, of the OECD Model Tax Convention in tax treaties [B.8] Publish clear and comprehensive MAP guidance [B.9] Make MAP guidance available and easily accessible and publish MAP profile [B.10] Clarify in MAP guidance that audit settlements do not preclude access to MAP Notes References Part C. Resolution of MAP Cases [C.1] Include Article 25(2), first sentence, of the OECD Model Tax Convention in tax treaties [C.2] Seek to resolve MAP cases within a 24-month average timeframe Figure C.1. Evolution of Austria’s MAP caseload Figure C.2. End inventory on 31 December 2017 (255 cases) Figure C.3. Evolution of Austria’s MAP inventory Figure C.4. Evolution of Austria’s MAP inventory Figure C.5. Cases closed during 2016 and 2017 (107 cases) [C.3] Provide adequate resources to the MAP function Figure C.6. Average time (in months) to close cases in 2016 or 2017 [C.4] Ensure staff in charge of MAP has the authority to resolve cases in accordance with the applicable treaty [C.5] Use appropriate performance indicators for the MAP function [C.6] Provide transparency with respect to the position on MAP arbitration Notes References Part D. Implementation of MAP Agreements [D.1] Implement all MAP agreements [D.2] Implement all MAP agreements on a timely basis [D.3] Include Article 25(2), second sentence, of the OECD Model Tax Convention in tax treaties or alternative provisions in Article 9(1) or Article 7(2) Notes References Summary Annex A. Tax treaty network of Austria Annex B. MAP statistics pre-2016 cases Annex C. MAP statistics post-2015 cases Glossary Addressing base erosion and profit shifting (BEPS) is a key priority of governments around the globe. In 2013, OECD and G20 countries, working together on an equal footing, adopted a 15-point Action Plan to address BEPS. Beyond securing revenues by realigning taxation with economic activities and value creation, the OECD/G20 BEPS Project aims to create a single set of consensus-based international tax rules to address BEPS, and hence to protect tax bases while offering increased certainty and predictability to taxpayers. In 2016, the OECD and G20 established an Inclusive Framework on BEPS to allow interested countries and jurisdictions to work with OECD and G20 members to develop standards on BEPS related issues and reviewing and monitoring the implementation of the whole BEPS Package. Over 100 countries and jurisdictions have joined the Inclusive Framework. Under Action 14, jurisdictions have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The minimum standard is complemented by a set of best practices. The peer review process is conducted in two stages. Stage 1 assesses jurisdictions against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' stage 1 peer review report. This report reflects the outcome of the stage 1 peer review of the implementation of the Action 14 Minimum Standard by Austria, which is accompanied by a document addressing the implementation of best practices