A comparison of the International Compliance Assurance Program (ICAP) features with other programs aimed at resolving double taxation
By François Vincent, Brian Trauman, Steven Back, Clémence Bon and Irina Puchkova, KPMG LLP
In a recent paper, titled International Compliance Assurance Programme – Oasis or Mirage, which appeared in Tax Management Transfer Pricing Report on August 23, 2018, the authors reviewed and compared the international compliance assurance program (ICAP)’s salient features with those of other existing programs aimed at resolving double taxation. Those programs are the various mechanisms involving two or more tax authorities found in or resulting from international tax treaties: the mutual agreement procedure (MAP), advance pricing arrangements (APA), joint audits, simultaneous tax examinations, and ICAP. The following table summarizes the highlights of that comparison as it relates to the following topics: (1) goals; (2) parties; (3) process; (4) documentation required; (5) timing; (6) availability; (7) benefits; and (8) drawbacks.
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Given the comparisons outlined above, we would offer the following advice/observations:
In the final analysis, it is probably too early to say whether the ICAP will become the next panacea for double-tax woes, but it will be interesting to follow how it develops in practice in order to determine its relative value in the portfolio of bilateral programs targeting transfer pricing.
These comments represent the views of the authors only, and do not necessarily represent the views or professional advice of KPMG LLP.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
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