The Tax Programme of the OECD Korea Policy Centre has held the 105^th tax seminar with respect to ‘Transfer Pricing Workshop on Dispute Resolution and Avoidance’ from December 4^th to 9^thin Jesu Island. Three experts from the OECD and member countries and more than thirty participants from non OECD economies have come to this event to debate the issues focusing on the Mutual Agreement Procedure and Advance Pricing Agreement reflecting on the BEPS project.

<Mr. Takahiro Hitakatsu>

<Mr. Anthony Mihalopoulos>

<Mr. Masato Yamamoto>

<The Director General Mr. Choonho Park and Mr. Sonam Dorji>

The seminar has been to discuss mechanisms to prevent and resolve transfer pricing disputes with a view to efficiently avoid or eliminate double taxation. The main topics for discussion were in the context of the global standard embodied in Action 14 of the BEPS Action Plan that aims at reducing costs for transfer pricing and tax administration related to avoidable disputes while enduring an adequate protection of taxpayers’ rights.

Each session has been based on lectures by experts and followed by discussions and group works based around cased studies and practical examples that requires participants’ active involvement. Participants also elaborated on the issues encountered in their professional practice regarding resolution of transfer pricing disputes existing in their respective countries.

It has addressed the theoretical and practical issues arising in the resolution and avoidance of transfer pricing disputes. The topics covered have included administrative and juridical appeals, avoidance of transfer pricing disputes. The topics were illustrated by case studies and role plays and Participants presented their countries’ legislation and practices regarding dispute avoidance and resolution during the event.

Here are the main topics discussed during the seminar,

- Course Introduction: objectives, the OECD’s Global Relations programme, overview of BEPS project, Roundtable, Introductions

- Transfer Pricing Adjustments / Economic and juridical double taxation

- Unilateral dispute resolution mechanisms (administrative and judicial appeals / litigation)

- Bilateral Dispute Resolution Mechanisms

- Arbitration (Article 25 (5) OECD Model Tax Convention / EU Arbitration Convention and Code of Conduct / Arbitration clauses in double taxation treaties)

- Conduct of the MAP APA Process (APA Request, Pre-filing/Informal Application Stage, Formal Application, Documentation Requirements)

- Finalization of the MAP APA (Critical Assumptions, Formal Agreement, Implementation)

- Monitoring, Renewal and Cancellation of the MAP APA

- BEPS Actions 13 – TP Documentation, BEPS Action 14 – Dispute Resolution, BEPS Action 15 – Multilateral Instrument in Australia.