DT8018 - DT: Germany, Federal Republic: double taxation agreement, Article 18A: Mutual agreement procedure

Article 18A was introducedby SI 1971/874

(1) Where a resident of one of the territories considers that the actions of one or both of the Contracting Parties 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 territories, present his case to the taxation authority of the territory of which he is resident.

(2) The taxation authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the taxation authority of the other territory, with a view to the avoidance of taxation not in accordance with the Convention.

(3) The taxation authorities of the territories shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the application of the Convention.

(4) Nothing in this Convention shall prevent tax in one of the territories from being deducted at source at the rates which would apply if this Convention were not in force. Where the income concerned is exempt from tax in such territory under the provisions of this Convention or where the amount of tax so deducted exceeds the amount of tax chargeable under the provisions of this Convention, the tax so deducted or the excess amount of tax shall be refunded upon application to be made by the recipient of such income to the tax office concerned. The refund shall be made if it is applied for within a period of three years from the day on which the income has been received or within such longer period as it permitted under the law in force in the territory concerned.

(5) The taxation authorities of the territories 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 applying the provisions of the Convention.