Norma General on Agreement Procedures Mutual for Litigation, Arbitration of Controversies
This standard general has for object establish those guidelines for the provisions of international agreements to avoid double taxation and prevent la evasion taxation Regarding the procedures for agreement mutual. The scope of this standard It covers taxpayers who wish to access the friendly agreement procedures established in the international agreements to avoid double taxation signed by the Republic Dominican Republic when they consider that the measures adopted by one or both contracting states imply or may imply taxation to the same income o . who does not agree with any of these agreements.
Any type of person who is a resident of the Republic Dominican, in the sense defined by the corresponding agreement to avoid double taxation and prevent la evasion taxation, and considers that the measures adopted by the Authority Competent of one of the two States, imply or may imply for it a taxation that is not in accordance with the provisions of the aforementioned agreement, may submit their /// to Authority Competent of his State de residence, or the State counterpart, as directed by the German international to avoid double taxation and prevent la evasion taxation that applies.
The request for initiation will be formulated by means of a written which must contain, as a minimum, the following information:
1. Name complete or reason Social, customer's home, as well as the number of Register National de Taxpayer (RNC) or Schedule de Identity of the person who submits the application.
2. Name full, customer's home and number of identification tax liability of the other parties involved in the transactions object de review.
3. The article and the agreement that taxpayer consider that it has not been applied correctly and the interpretation that gives to that article.
4. Identification of the affected fiscal years.
5. Detailed description of the acts y circumstances relevant to the ///. The amounts must be included in question, as well as data relating to the relationships, situations or structure of operations between the persons affected.
6. Identification of the resources administrative or judicial proceedings brought by the applicant or by the other parties involved, as well as any resolution o consultation that would have fallen on the same question, if any.
7. Indication of whether the taxpayer or any of its counterparties in the transactions has previously submitted an application to any of the Authorities Competent persons involved in the same question or another similar one, for which you must provide copies of said documents.
8. Declaration stating whether the application includes any question that can be considered that crafts part of an Advance Pricing Agreement (APA), protection regimes or any other proceedings Similary.
9. Date y company of the person requesting the start of the Procedure in agreement Mutual or your representative.
The request to start the Procedure in agreement Mutual must be submitted before the end of the Plazo that the respective one provides agreement, counted from the to date following that of the notification of the act de settlement or on equivalent that causes, or may cause, taxation that affects the provisions of saying agreement.
In a Plazo No. Most Within thirty (30) business days from the when and where in which the request for initiation has been received in the record of the Authority Competent, its content will be analyzed and the applicant may be required to documentation and the necessary clarifications for solve may be made by each duda that is raised in the review.
The applicant will have a Plazo No. Most of twenty (20) business days, counted from the to date next of the notification of the request to provide the documentation e insights Clarifying. The lack of attention of the request will determine the filing of the proceedings and the request will be answered crafts unfavorable.
After thirty (30) business days without the Administration has required the extension, correction or improvement of the request, or twenty (20) business days from receipt of the entire documentation en /// that any work has been done request, the Authority
Competent will determine the admission or not of the request for initiation and will notify the taxpayer. The admission of the application implies the notification to Authority Competent of the other State through a Menu de Opening.
Rejection of Procedure in agreement Mutual
May deny motivatedly to taxpayer the beginning of the Procedure in agreement Mutual When, by way of example and not limitation, any of the following situations occur:
a. When there is no agreement Applicable with article related to Procedure in agreement Mutual.
b. When the application has been submitted outside the Plazo regulated in the agreement.
c. When it is not appropriate to initiate a Procedure in agreement Mutual for being a question right internal and not a divergence or discrepancy in the application of the agreement.
d. When it is known that the performance of the obliged tax sought to avoid taxation in the Contracting States party to the DTA.
e. When the request refers to the opening of a new proceedings on a question that would have already been object of other Procedure in agreement Mutual previously raised by the same obliged tax and on which an agreement had been reached between both Authorities Competent or on which the party had withdrawn obliged tax.
f. If said request has been resolved in final before the courts of the Republic Dominican, in the /// of the measures adopted in the country.
g. Do not state the measures adopted by one or both States that are not in accordance with the ILC.
h. The request is based on taxes that are not included in the CDI invoked.
Once the application is accepted, the Authority Competent determines whether he can solve la question manner unilateral. In /// not power do so, it is notified to the Authority Competent counterpart, Together with Valid identity document de positions.
Evaluating the position of the taxpayer
La Authority Competent will evaluate the request for Procedure in agreement Mutual of the interested party and will establish the Dominican position in a Plazo maximum of four (4) months counted from the admission of the request, based on the insights received the request from the taxpayer and documentation e insights that you can request from the taxpayer and Authority Competent of the other State along proceedings, considering as described in this article.
For the establishment of the Dominican position, the Authority Competent may request the part interested, the documentation and the reports that are considered relevant, which must be submitted in the Plazo Within thirty (30) business days from receipt of the request.
They will be exchanged for the Authorities Competent as many proposals as necessary to try to reach an agreement.
In those cases where the situation raised by the taxpayer can be resolved by crafts unilateral awarded by the Authority Competent of the Republic Dominican, it will not be necessary to require the position of the Authority Competent of the other State and will only be notified of the resolution of the request.
Termination of the Procedure in agreement Mutual
El Procedure in agreement Mutual may end in any of the following ways:
a. By withdrawal of the taxpayer.
b. By agreement of the Authority Competent Dominican in the /// de solution unilateral.
c. By agreement between the Authorities Competent States part of a CDI.
Applicants for the Procedure in agreement Mutual They may withdraw from this by means of written communication addressed to the Authority Competent with which the process will be completed proceedings. If there are several taxpayers, the withdrawal It will affect only those who have formulated it, which must be communicated to the Authority Competent of the other State.
The decision not to eliminate double taxation or taxation not in accordance with the agreement may be based on, but not limited to, any of the following causes:
a. When the acts object of the proceedings cannot be modified by haber prescribed as seen here to internal regulations and the agreement applicable.
b. When both Authorities Competent people hold different interpretations of the agreement due to differences in the respective internal legislation.
c. When the taxpayer Do not facilitate the insights y documentation necessary to solve the /// or when the stoppage of the proceedings for reasons attributable to it.
d. When the taxpayer Do not accept the agreement to eliminate double taxation or taxation not in accordance with the agreement.
This determination may be accepted or rejected by the taxpayer and in /// to be accepted, the part interested party should notify to Authority Competent its conformity through a communication formal sent through the channels enabled for such purposes, and its resigns resources earrings that could haber submitted with respect to the issues resolved by this proceedings.
From the No Acceptance
the not acceptance of the agreement must be notified by the taxpayer through a communication formal sent through the channels enabled for such purposes, in which your disagreement with the content of the agreement will be recorded. This discrepancy will be communicated to the Authority Competent of the other State for, of mutual agreement, consider the /// closed with an agreement not to eliminate double taxation or taxation not in accordance with the agreement.
You will not be able to interpose resource any against the termination agreements of the proceedings, without damage of the resources to proceed against the act or administrative acts issued in application of said agreements.
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