Guidelines for Mutual Agreement Procedure

Tags: Guidelines for Mutual Agreement Procedure, MAP

Introduction

Mutual Agreement Procedure (MAP) is a dispute resolution facility provided under the MAP Article in Double Taxation Conventions (DTC) signed by Trinidad and Tobago. Under this facility, upon eligible requests from Taxpayers, the Trinidad and Tobago Competent Authority negotiates with the relevant foreign Competent Authority to resolve disputes with regard to the application of the Double Tax Convention. MAP can be negotiated bilaterally or multilaterally subject to the tax convention being referred to.

The Trinidad and Tobago tax administration, the Inland Revenue Division (IRD) provides Competent Authority assistance pursuant to Trinidad and Tobago’s tax conventions. A list of countries with which Trinidad and Tobago has concluded a double tax convention is available on the Inland Revenue Division’s website at: https://www.ird.gov.tt/law-policy/double-taxation-treaties

This document is intended to provide guidance on obtaining assistance from the Trinidad and Tobago Competent Authority to persons or entities that fall within the scope of a tax convention that Trinidad and Tobago has negotiated with another country. This assistance is provided to Taxpayers in order to try to resolve situations where they are subject to taxation not in accordance with the provisions of the relevant tax convention. The guidelines are not intended to modify, restrict or expand any rights or obligations contained in any provision in Trinidad and Tobago’s tax conventions. This guidance facilitates and supports the resolution of MAP cases between treaty partners and ensures consistent and timely treatment.

Purpose of Guidance

The primary purpose of Trinidad and Tobago’s tax conventions is for the elimination of double taxation with respect to taxes on income and capital and the prevention of tax avoidance and evasion in respect of taxes on income. A tax convention will also serve to allocate tax revenues on transactions taking place between residents of the signatory countries. A tax convention may provide rules determining:

  • the country in which a Taxpayer is resident;
  • the types of income or capital that each country may tax;
  • the treatment given to specific types of income;
  • the allowable rates of withholding tax on specific types of cross-border payments; and
  • the manner in which issues of taxation not in accordance with the tax convention are to be resolved.

Assistance by the Trinidad and Tobago Competent Authority is generally provided under the MAP Article contained in Trinidad and Tobago’s Double Tax Conventions. In certain situations other Articles may apply to allow for Competent Authority assistance.

Why apply MAP?

Where a person considers that the actions of one or both of the Contracting States (Trinidad and Tobago and its Treaty Partners) result or will result in taxation not in accordance with the provisions of the Double Taxation Convention (DTC) signed by both countries, such person may, irrespective of the remedies provided by the domestic law of those Contracting States, present their case to the Competent Authority of the Contracting State of which the Taxpayer is resident. The case must be presented within the timeframe mentioned in the DTC from the first notification of the action resulting in taxation not in accordance with the provisions of the DTC.

The MAP Article provides for direct cooperation between the competent authorities of Contracting States to resolve problems or disputes with respect to treaty interpretation and application. The competent authorities in the MAP process are each other’s point of contact with respect to the day to day issues that arise from applying the tax convention. The MAP is available to Taxpayers in addition to other remedies provided for by the domestic laws of the Contracting States. Thus a Taxpayer has the right to MAP assistance and also the right to challenge the actions taken by a country’s tax administration through domestic administrative procedures.

The commitment of the Trinidad and Tobago Competent Authority

In Trinidad and Tobago the term “Competent Authority” is defined as the Minister to whom the responsibility for Finance is assigned or the Minister’s authorised representative. The full powers of the Competent Authority have been delegated to the Commissioner of Inland Revenue and Chairman, Board of Inland Revenue.

The Trinidad and Tobago Competent Authority endeavours to resolve Competent Authority requests in an equitable manner in accordance with the Income Tax Act, Chapter 75:01 (Trinidad and Tobago), the applicable Double Taxation Conventions, case law and other relevant commentaries such as the Organisation for Economic Co-operation and Development (OECD) and the United Nations (UN) Model Tax Convention on Income and on Capital. To fully carry out this obligation, every effort is made to reach a satisfactory resolution of the issues involved.

Requests for Competent Authority assistance must be done in english language and submitted in writing to:

Trinidad and Tobago Competent Authority
Commissioner of Inland Revenue and Chairman of the Board
Board of Inland Revenue
Inland Revenue Division
Government Campus, 2-4 Ajax Street, Port of Spain

The Trinidad and Tobago Competent Authority negotiates with other competent authorities in a principled, fair and objective manner. Each case is decided on its own merits. The Trinidad and Tobago Competent Authority will strive to resolve cases in a timely manner and will keep the Taxpayer informed of the status of the request on an on-going basis. Once a decision has been made on a case, the Taxpayer will be advised of the decision in writing.

Typical Requests for Assistance from the Trinidad and Tobago Competent Authority

Where a person considers that the actions of one or both tax administrations result or will result in taxation not in accordance with the tax convention, the person may request Competent Authority assistance under the MAP article of the tax convention. In most cases, such an action is an adjustment to, or a formal written proposal to adjust income related to a transaction to which the Trinidad and Tobago Taxpayer is a party. Taxpayers must approach the Competent Authority of their country of residence to request relief under a tax convention. In cases where an adjustment is made that affects related parties in both Trinidad and Tobago and a treaty country, each Taxpayer should make a separate request for assistance to the Competent Authority of the country in which it is resident.

Examples of taxation not in accordance with a tax convention that may warrant a request for assistance to the Trinidad and Tobago Competent Authority include:

  • A Trinidad and Tobago resident Taxpayer is also considered to be a resident of a treaty country under that country’s domestic law, and each country asserts that the Taxpayer is a resident of its jurisdiction for purposes of the tax convention. If unresolved, the Taxpayer could be subject to tax on the same income in both countries. A request to the Trinidad and Tobago or foreign Competent Authority will be necessary to initiate negotiation between the competent authorities regarding the proper application of the tie breaker rules contained in the residency article of the convention. The Taxpayer should approach the Competent Authority of the country in which the Taxpayer asserts residency;
  • A Taxpayer in a treaty country is subject to additional tax because of an adjustment to the price of goods or services transferred to or from a related party in Trinidad and Tobago. At the Trinidad and Tobago taxpayer’s request, the Trinidad and Tobago Competent Authority may, subject to the terms of the relevant DTC, allow a corresponding deduction in Trinidad and Tobago to prevent double taxation;
  • A branch of a Trinidad and Tobago resident Taxpayer operating in a treaty country is subject to additional tax because of an adjustment by the treaty country of the income allocated to the branch. Subject to the terms of the relevant DTC, the Taxpayer may request that the Trinidad and Tobago Competent Authority allow an increased foreign tax credit in Trinidad and Tobago to prevent double taxation;
  • A Trinidad and Tobago Taxpayer subject to tax in Trinidad and Tobago on world income, including income from carrying on a business in a treaty country, is taxed in the treaty country on the business income earned in the treaty country despite not having a permanent establishment in that country under the tax convention. The Taxpayer may request the Trinidad and Tobago Competent Authority to address the issue of taxation not in accordance with the tax convention with the Competent Authority of the other country;
  • Tax is withheld by a treaty country on a payment to a Trinidad and Tobago resident at a rate in excess of the rate stated in the tax convention. The Taxpayer may request the Trinidad and Tobago Competent Authority to address the taxation not in accordance with the tax convention with the Competent Authority of the other country;
  • Where there is uncertainty whether the treaty covers an item of income arising in the other jurisdiction, the Taxpayer may approach the Trinidad and Tobago Competent Authority for clarification;
  • Where there are different applications by member states, of the articles in the Double Taxation Relief (CARICOM) Order (a multilateral tax treaty) which may result in the Taxpayer being taxed excessively, e.g. determination of residence or where the income arises;
  • Access to MAP will be granted for any DTC which does not contain a provision equivalent to Article 9(2) of the OECD model tax convention (see italics below);

    Article 9 (2). Where a Contracting State includes in the profits of an enterprise of that State — and taxes accordingly — profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.

  • Where issues arise relating to the application of tax treaty anti-abuse provisions or the application of domestic anti-abuse provisions, Trinidad and Tobago will engage in consultation with the Competent Authority of the other Contracting State;
  • With respect to settlements, access to MAP will be granted. However, the Competent Authority may limit access to the mutual agreement procedure with respect to the matters resolved through that administrative or statutory process. In all cases the Competent Authority of the other country will be notified of such processes. Access to MAP will be allowed for correlative adjustment.
  • The Trinidad and Tobago Competent Authority may initiate Competent Authority proceedings and subsequent negotiations in order to protect Trinidad and Tobago’s interest. For example, the Trinidad and Tobago Competent Authority may disagree with the interpretation by its treaty partner of a provision in a tax convention. Such a situation could involve a specific Taxpayer or group of Taxpayers. In either case, the Trinidad and Tobago Taxpayer(s) will be advised of the Competent Authority proceedings and outcome. Moreover, the Taxpayer maintains the right to reject a Competent Authority agreement reached in this manner; andThe Trinidad and Tobago Competent Authority may initiate Competent Authority proceedings and subsequent negotiations in order to protect Trinidad and Tobago’s interest. For example, the Trinidad and Tobago Competent Authority may disagree with the interpretation by its treaty partner of a provision in a tax convention. Such a situation could involve a specific Taxpayer or group of Taxpayers. In either case, the Trinidad and Tobago Taxpayer(s) will be advised of the Competent Authority proceedings and outcome. Moreover, the Taxpayer maintains the right to reject a Competent Authority agreement reached in this manner; and
  • A Trinidad and Tobago resident may seek assistance from the Trinidad and Tobago Competent Authority if the resident believes that a Trinidad and Tobago initiated adjustment results or will result in taxation not in accordance with the tax convention. For example, a Taxpayer in Trinidad and Tobago who is subject to additional tax because of a proposed adjustment to the price of goods or services transferred to or from a related party in a treaty country, may subject to the terms of the relevant DTC, request the Trinidad and Tobago Competent Authority to ask the other Competent Authority to allow a corresponding deduction for the related party in the treaty country in order to prevent double taxation.

Legal basis for a MAP request

Under the relevant Article of the Trinidad and Tobago tax convention, a Taxpayer who considers that the actions of one or both of the Contracting States result or will result in taxation not in accordance with the treaty, may request the assistance of the Competent Authority to resolve the case with a view to ensure taxation is in accordance with the convention. MAP is the primary means by which a Taxpayer may make a Competent Authority aware that the actions of one or both of the Contracting States result or will result in taxation not in accordance with the treaty. Taxpayers may request MAP assistance under the terms of the relevant DTC. However, it is to be noted that none of Trinidad and Tobago’s treaties provide for arbitration.

Making a MAP request

It is generally advisable that Taxpayers planning on making a request for MAP assistance should acquaint themselves with and make appropriate use of procedures protecting their rights to domestic administrative recourse under the Income Tax Act, Chapter 75:01. Any person who is dissatisfied with the decision of the Board of Inland Revenue may appeal to the Tax Appeal Board in accordance with the provisions of the Tax Appeal Board Act, Chapter 4:50.

A typical MAP case begins when a Taxpayer contacts the Competent Authority of its State of residence to request assistance where the action of one or both of the Contracting States results or will result in taxation not in accordance with the applicable tax treaty. A Taxpayer may also make a MAP request to the Contracting State of which he is a national if his case comes under the Article for Non-Discrimination of the relevant convention.

This notification may be brief, indicating only the nature of the request, and the persons and years involved. The notification will be considered complete only upon receipt of the information outlined in Appendix 1. The Trinidad and Tobago Competent Authority will not initiate MAP process until a complete request for assistance is received.

A Taxpayer requesting MAP assistance must submit the MAP request in writing in english language to the relevant Competent Authority. The Taxpayer must provide the required information as specified in Appendix 1 of the MAP Guidelines attached. The Taxpayer’s MAP request should in all cases describe in detail the relevant facts and circumstances, the procedural situation of the case, and the issue(s) in connection with which Competent Authority assistance is requested.

The timing of the filing and completion of the MAP case

  • The time limit for submitting a request for MAP assistance under a DTC is determined by the relevant DTC. In the absence of a time limit in the particular DTC the Taxpayer may be guided by Articles 25 (1) of the OECD model treaty and the time limit of three (3) years from first notification of the action resulting in taxation not in accordance with the convention.
  • The time required to complete a MAP case will depend on a number of factors, including the complexity of the case, the resources available to the competent authorities, and their overall caseloads. In general, most competent authorities will endeavour to complete a MAP case within two (2) years of the date of its acceptance. Acceptance is normally within thirty (30) days of receiving a completed request; and
  • Where the time limit specified in a DTC has not been met, a request for MAP assistance will not be accepted.

Information required for submitting a valid MAP request

In order for a MAP request to be considered a valid request under the DTC, the MAP request must be submitted to the Competent Authority. The request should specify the requirements outlined in Appendix 1. The minimum information is as follows:-

  • the identification of the Taxpayer to which the MAP relates and the other parties to the relevant transactions;
  • the tax period(s) concerned;
  • details of the relevant facts and circumstances of the case;
  • copies of any tax assessment notices, tax audit reports or equivalent documents leading to the alleged double taxation;
  • details of any appeals and litigations initiated by the Taxpayer or other parties to the relevant transactions;
  • an explanation by the Taxpayer of why it considers that the principles of the DTC have not been observed; and
  • The Taxpayer must also undertake to respond as completely and quickly as possible to requests made by the Competent Authority for further information.

Analysis of a MAP Request

Where a request is made to the Trinidad and Tobago Competent Authority under the MAP article of a tax convention, the Trinidad and Tobago Competent Authority will first, if the request appears to be justified and can be accepted from a policy standpoint, attempt to resolve the matter unilaterally. For example, if the Trinidad and Tobago Competent Authority considers that the request for relief is warranted and the relief requested is entirely within the bounds of Trinidad and Tobago’s tax laws, it could provide the relief without consulting the other Competent Authority. If the Trinidad and Tobago’s Competent Authority is not itself able to arrive at a satisfactory solution, it will endeavour to resolve the matter by mutual agreement with the other Competent Authority.

The Trinidad and Tobago Competent Authority may also be approached by a treaty partner and be requested to give correlative relief through a “corresponding adjustment.” The term “corresponding adjustment” is an adjustment made by Trinidad and Tobago or by its treaty partner in order to relieve double taxation caused by an adjustment initiated by the other tax administration.

Under certain articles of a number of Trinidad and Tobago’s tax conventions, a resident of a treaty country may request that the Trinidad and Tobago Competent Authority enter into an agreement as contemplated by the convention without first bringing the matter to the attention of the Competent Authority of the treaty country. For example, specific provisions in a tax convention may deal with inconsistent domestic treatment of corporate reorganizations, under which Taxpayers may incur unrelieved double taxation due to mismatches in the timing of recognition of income in the two countries. Under these provisions, a foreign Taxpayer may enter into an agreement directly with the Trinidad and Tobago Competent Authority for the inclusion or deferral of income in Trinidad and Tobago to alleviate timing mismatches. The effect is relief from the double taxation or potential double taxation that may arise due to the difference between Trinidad and Tobago and foreign tax law requirements. Agreement by the Trinidad and Tobago Competent Authority is discretionary.

Although not under the category of a “typical request,” the Trinidad and Tobago Competent Authority may initiate Competent Authority proceedings and subsequent negotiations without a specific request from a Taxpayer in any situation where there is taxation not in accordance with a tax convention in order to protect Trinidad and Tobago’s interests. For example, the Trinidad and Tobago Competent Authority may disagree with the interpretation by its treaty partner of a provision in a tax convention. Such a situation could involve a specific Taxpayer or a group of Taxpayers. In either case, the Trinidad and Tobago Taxpayer(s) will be advised of the Competent Authority proceedings and outcome. Moreover, a Taxpayer maintains the right to reject a Competent Authority agreement reached in such a situation.

For any situation where the Trinidad and Tobago Competent Authority considers an objection raised in a MAP request as being not justified, the Trinidad and Tobago Competent Authority will implement a bilateral consultation or notification process which will allow the other competent authority to provide its views on the case. It must be noted that such consultation shall not be interpreted as consultation as to how to resolve the case.

Acceptance of a MAP application

  • Trinidad and Tobago Competent Authority will consider Taxpayers' requests for a MAP based on the merits of each case;
  • The MAP does not deprive Taxpayers of other remedies available under their respective domestic tax law;
  • A MAP application will only be accepted if:
    • the issue or transaction relates to a foreign country with which Trinidad and Tobago has a tax convention;
    • it is evident that the actions of one or both countries have resulted or will result in taxation not in accordance with the tax convention;
    • the Taxpayer notifies the Competent Authority within the time limits specified in the applicable tax convention (If the applicable tax convention does not specify a time limit for notification, a Taxpayer may be guided by the OECD Model time limit of 3 years found in Article 25(1);
    • the issue is not one that the Trinidad and Tobago and/or the foreign Competent Authority have decided, as a matter of policy, not to consider; and
    • the taxation years affected by MAP requests does not become statued barred under the Income Tax Act.
  • Taxpayers should inform Trinidad and Tobago Competent Authority and the relevant foreign Competent Authority if the matter is adjudicated through any legal or judicial proceedings while the MAP process is still ongoing;
  • The competent authorities will discuss and decide if the MAP should continue, cease or be suspended;
  • Where the matter has been subjected to litigation and determination by the Trinidad & Tobago tribunals and courts, the Competent Authority will not depart from the determination of the Trinidad & Tobago tribunals and courts;
  • Taxpayers are responsible for the completeness and accuracy of the information included in the request;
  • Trinidad and Tobago Competent Authority may deny any MAP application if the Taxpayer failed to provide complete and accurate information or has made any misrepresentation;
  • For cases where a MAP application is rejected, the Competent Authority will notify Taxpayer of the rejection and provide reasons for the rejection of the MAP application; and
  • The Trinidad and Tobago Competent Authority will notify the Taxpayer in writing whether it has accepted or declined the request for Competent Authority assistance normally within thirty days of receiving a completed request. The Taxpayer will be provided with the reasons for the decision where a request is declined.

Resolution of a MAP case

  • Upon accepting a MAP application, Trinidad and Tobago Competent Authority will engage the relevant foreign Competent Authority to discuss the MAP case;
  • Trinidad and Tobago Competent Authority will also apply its best efforts to bring every case to closure in a prompt, efficient and effective manner;
  • Trinidad and Tobago Competent Authority may request the Taxpayer to submit additional documents necessary or invited to make a presentation to the competent authorities for the purpose of the MAP;
  • While Trinidad and Tobago Competent Authority works to achieve timely resolution of the MAP case, the complexity of issues involved in each case will determine the actual time needed to resolve the case; and
  • In general, Trinidad and Tobago Competent Authority aims to resolve a MAP case within two years from receiving the Taxpayer's complete application.

Termination of a MAP case

Trinidad and Tobago Competent Authority reserves the right to propose to the Competent Authority of the treaty partner to terminate MAP process under the following circumstances:

  • When the subject for MAP is not within the scope of MAP under the applicable tax treaty;
  • When the application for MAP or the attachments contains incorrect information;
  • When the Taxpayer does not provide the documents necessary for the MAP;
  • When retrieval of documents necessary for MAP is not possible due to lapse of time;
  • When the Taxpayer does not accept the proposed agreement reached by the competent authorities;
  • When it is recognized that the continuation of MAP will not reach any agreement; and
  • Court judgement on the matter.

Withdrawal of a MAP request

  • The Taxpayer can withdraw its MAP request at any time during the MAP process and before a MAP agreement has been reached;
  • Any withdrawal of a MAP request should be made in writing to Trinidad and Tobago Competent Authority with reasons for same;
  • The Trinidad and Tobago Competent Authority will inform the Competent Authority of the treaty partner on the MAP termination by the Taxpayer: and
  • Where the Competent Authority of the treaty partner has accepted the proposal from Trinidad and Tobago Competent Authority to terminate MAP or vice versa, the Trinidad and Tobago Competent Authority will notify the Taxpayer that MAP has been terminated.

Implementation of a MAP resolution

  • When an outcome is reached between the Trinidad & Tobago Competent Authority and the relevant Foreign Competent Authority, the Taxpayer will be informed in writing with appropriate explanation as to the basis of the decision within thirty days of reaching the agreement.
  • The Taxpayer will have to decide and inform the Competent Authority in writing within thirty days, whether the agreed outcome is acceptable;
  • The Taxpayer is not obliged to accept the outcome agreed between the competent authorities;
  • A Taxpayer however, is not allowed to choose which part of agreed outcome to be accepted as the MAP assistance is originally intended for the whole issues requested by the Taxpayer;
  • Unless the Taxpayer rejects the outcome, the Trinidad and Tobago Competent Authority and the relevant foreign Competent Authority will proceed to agreement on the matter and conclusion on the MAP case;
  • If, however, the outcome is rejected, it will not be implemented. The Competent Authority will then consider the MAP case closed and will advise the Taxpayer accordingly. The Taxpayer can then choose to take the case further through regular administrative and /or legal proceedings in Trinidad and Tobago or the other state, as long as these options are still available;
  • If any interest or penalties have been imposed in a jurisdiction in connection with the taxation that is the subject of the MAP, the MAP agreement may address whether any refund of such interest or penalties should appropriately be made; and
  • Trinidad and Tobago Competent Authority will take the necessary action to put into effect the results as required by the agreement, in accordance with the applicable tax treaty.

Taxpayer Cooperation

A Taxpayer’s failure to co-operate with the Trinidad and Tobago Competent Authority during any part of the Competent Authority process may have direct consequences on whether relief can be provided under the MAP. Specifically, the Trinidad and Tobago Competent Authority may request additional information beyond that which was requested during an audit, and may also request information that was requested but not provided during an audit. It is to the Taxpayer’s benefit to be fully cooperative and transparent to ensure an efficient Competent Authority process. The timely provision of requested information is essential to enable the competent authorities to reach an equitable and expeditious conclusion.

Where the failure to provide the requested information within a reasonable time hinders the Trinidad and Tobago Competent Authority’s ability to perform its duties in an efficient and effective manner, it may lead to a denial of Competent Authority assistance or the Trinidad and Tobago Competent Authority being unable to reach a mutual agreement with the other Competent Authority. Ultimately, this may result in double taxation or taxation not in accordance with the tax convention.

Disputing Assessements

Taxpayers should exercise their rights to dispute assessments within the time limitations provided under the Income Tax Act, Chapter 75:01 for lodging an objection or an appeal. Ideally, the MAP should be requested when the Taxpayer has been reasonably convinced that they were or would have been subjected to taxation that is not in accordance with the tax treaty.

Waivers of rights to objections do not affect a Taxpayer’s right to seek relief from the Trinidad and Tobago Competent Authority for taxation not in accordance with a tax convention.

If a Taxpayer believes that taxation not in accordance with the tax convention remains following an objection decision, the Taxpayer can submit the issue for Competent Authority consideration, or if already submitted, ask that the Competent Authority procedure recommence.

In cases where a Trinidad and Tobago court decision has been rendered, the Trinidad and Tobago Competent Authority will provide the other Competent Authority with the outcome of the court decision. However, the Trinidad and Tobago Competent Authority cannot alter a court decision. Any relief for double taxation or taxation not in accordance with the tax convention will be possible only in the other country at the discretion of its Competent Authority. The Trinidad and Tobago Competent Authority will not undertake any action that would undermine a Trinidad and Tobago court decision.

The Trinidad and Tobago Competent Authority is not bound by a decision given by a foreign court or a foreign appeal settlement. The granting of any relief to the Trinidad and Tobago Taxpayer by the Trinidad and Tobago Competent Authority in such situations will depend on the merits of each case.

Collections

Where the Trinidad and Tobago Competent Authority has confirmed a tax liability by reassessment, an application for Competent Authority assistance does not suspend the requirement to pay the tax liability, penalty or interest thereon, or collection action by the Competent Authority

Responsibilities of the Taxpayer

Taxpayers are expected to co-operate fully with the Trinidad and Tobago Competent Authority by providing information and assistance when requested. Taxpayers should not make claims for corresponding adjustments or foreign tax credits for foreign tax administration adjustments, either when filing their current Trinidad and Tobago income tax returns or by filing amended income tax returns, without first seeking assistance from the Trinidad and Tobago Competent Authority. Taxpayers can only obtain a corresponding adjustment through the Competent Authority process. Failure to seek Competent Authority assistance will cause delays and may result in double taxation.

Once a Competent Authority request has been accepted, the Taxpayer is responsible for supplying the Trinidad and Tobago Competent Authority with complete and accurate information required to resolve the case. The onus is on the Taxpayer to keep the Trinidad and Tobago Competent Authority informed of all material changes in the information or documentation previously submitted as part of, or in connection with, the request, as well as new information or documentation relevant to the issues under consideration. Without proper information and documentation, competent authorities may be unable to resolve disputes expeditiously and the risk of unrelieved double taxation increases. Where a request also involves a related foreign Taxpayer making a request to a foreign Competent Authority, the Taxpayers should ensure that the same information is provided to both competent authorities at the same time.

Taxpayers are responsible for ensuring that the taxation years affected by the MAP request do not become statute-barred under the Income Tax Act.

Related foreign Taxpayers involved in the request should also take such timely action as may be necessary with the foreign tax administration. The Trinidad and Tobago Competent Authority will not rescind a Trinidad and Tobago initiated adjustment solely because the taxation year of the related foreign Taxpayer is beyond the statute-barred date in the foreign jurisdiction.

MAP discussions between the Trinidad and Tobago Competent Authority and the other Competent Authority are a government-to-government process in which there is generally no direct Taxpayer involvement. Therefore, Taxpayer involvement in the MAP is limited to presenting the Taxpayer’s views and assisting in the fact-finding without participating in the negotiation process. However, Taxpayers may be invited to make a presentation before the competent authorities, where appropriate, to ensure a common understanding of the facts of a particular case.

Confidentiality of Taxpayer’s information

All information obtained or generated during the MAP process is protected by the confidentiality provisions of the Income Tax Act, Chapter 75:01 and the provisions of the applicable tax treaty. They limit the rights and powers of the Trinidad and Tobago Competent Authority to disclose information submitted in connection with a Competent Authority request. In addition, the Trinidad and Tobago Competent Authority recognises that the disclosure of sensitive or confidential information such as a trade secret could harm a Taxpayer’s competitive position, and ensures that all measures are taken to protect such information.

Appendix 1: Information and documentation required to be submitted with a request for MAP assistance

Information and documentation submitted with a request for MAP assistance should be provided in three hard copies, in english as follows:

  • Taxpayer's legal name, address, tax identification number, contact details and main business activities;
  • The name, address, and any Taxpayer identification number of the related foreign Taxpayer(s) involved;
  • Letter of authorization stating the engagement of tax agents or other representatives to act for the Taxpayer (where applicable);
  • The name of the Treaty Partner tax administration involved;
  • The specific DTC including the provision(s) of the specific article(s) which the Taxpayer considers is not being correctly applied;
  • The relevant facts of the case including any documentation to support these facts, the taxation years or period involved and the amounts involved;
  • Analysis of the issue(s) involved, including Taxpayer's interpretation of the application of the specific DTC provision(s), to support the claim that the provision of the specific DTC is not correctly applied, together with relevant documentation (e.g. copies of tax assessments, audits conducted by the tax authorities leading to the incorrect application of the DTC provision);
  • Whether the MAP request was also submitted to the Competent Authority of the treaty partner. If yes, a copy of that submission is required unless the content of both MAP submissions are exactly the same;
  • A schedule of the relevant time limits and statutes of limitation in each jurisdiction (whether imposed by domestic law or the tax treaty) with respect to the taxable periods for which MAP relief is sought (in cases of multiple Taxpayers, a schedule for each Taxpayer);
  • Whether the Taxpayer has pursued domestic remedies such as tax tribunals or courts in the foreign jurisdiction. If yes, a copy of the decision is to be provided;
  • Whether similar issue(s) has been previously dealt with in an advance ruling or by any tax tribunal or court. If yes, a copy of these rulings or decisions should be provided where relevant and available;1: MAP
  • How the Taxpayer has reflected the issue(s) in its Trinidad & Tobago income tax return (e.g. income not brought to tax, foreign tax credit claimed);
  • A statement confirming that all information and documentation provided in the MAP request is accurate and that the Taxpayer will assist the Competent Authority in its resolution of the issue(s) presented in the MAP request by furnishing any other information or documentation required in a timely manner;
  • A statement indicating whether the Taxpayer has filed a notice of objection or a notice of appeal and whether it was suspended or not on filing of MAP request;
  • A statement indicating whether the Taxpayer has a refund claim or any other comparable document in either of the relevant jurisdictions; and
  • Any other facts that the Taxpayer may consider relevant.