Mutual agreement procedure

Our Double Tax Agreements ("DTAs") contain a provision called the Mutual Agreement Procedure. This allows a taxpayer to present their case to the tax administration, the "competent authority". The procedure is also referred to as a request for competent authority assistance. Most cases requiring competent authority assistance concern transfer pricing adjustments.

John Nash, as Chief Advisor (International Audit) is New Zealand’s designated competent authority.

Resolutions of double taxation

Inland Revenue may:

• agree with the merits of the overseas adjustment and give a corresponding downwards adjustment in New Zealand, or
• seek to persuade the treaty partner to reduce or withdraw their adjustment.

In nearly all cases, there is a successful resolution of the double taxation.

Transfer pricing adjustments for New Zealand taxpayers

For transfer pricing adjustments for New Zealand taxpayers, the affected associated enterprise located in a treaty country should present its case to the competent authority of that country..

If you have a case to present, please send your details to:

Chief Advisor (International Audit)
International Audit Unit
Inland Revenue
PO Box 2198
Wellington

Date published: 02 Dec 2010

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