DT7326 - DT: France: double taxation agreement, Article 26: Mutual agreement procedure

(1) Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authorities of either Contracting State.

(2) The competent authorities shall endeavour, if the objection appears to them to be justified and if they are not themselves able to arrive at an appropriate solution to resolve the case by mutual agreement with the competent authorities of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention.

(3) The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties arising as to the application of the Convention. In particular the competent authorities may consult together to endeavour to resolve disputes arising out of the application of paragraph (2) of Article 6 or Article 8, or the determination of the source of particular items of income.

(4) The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs or for the purpose of giving effect to the provisions of the Convention and for resolving any difficulty as to the application of the Convention.

(5) In France where the income or profits of an enterprise are adjusted pursuant to Article 8, taxes shall be imposed on such income or profits, or refund of taxes shall be allowed, in accordance with the agreement reached by the competent authorities respecting such adjustments.

(6) In the United Kingdom where profits on which an enterprise of the United Kingdom has been charged to United Kingdom tax are also included in the profits of an enterprise of France in accordance with Article 8, the amount included in the profits of both enterprises shall be treated for the purposes of Article 24 as income from a source in France of an enterprise of the United Kingdom and credit shall be given accordingly in respect of the extra French tax chargeable as a result of the inclusion of the said amount.