APA Cancellation and Review
- In accordance with PMK-172/2023, an APA may be evaluated by DGT, and DGT is authorised to:
- carry out an evaluation with the Taxpayer concerning the implementation of the agreement in APA;
- ask for the Taxpayer to provide information and/or evidence or statement necessary;
- visit the place of business of the Taxpayer and/or Taxpayer's related party;
- interview the management and/or employee of the Taxpayer; and/or
- to ask for information and/or evidence or statement from the related party or other parties concerned
- Based on the evaluation, DGT is authorised to review or to cancel the APA.
- In some cases, the APA may provide for review of its terms in specific circumstances, for example, a particular change in corporate structure or economic circumstances that makes the agreed methodology difficult to apply. Consequently, the agreement may be modified with the consent of the parties to resolve that difficulty. In such cases, the APA may be revised in accordance with PMK-172/2023, which is conducted by implementing the provisions as referred to in Article 57 (review the completeness and eligibility) to Article 60 (negotiation).
- The Taxpayer may, if deemed necessary, request for a review. The request for APA review must be submitted directly to the Director General of Taxes through the Director of International Taxation by filling correctly, completely, and clearly, the form as referred to in Attachment in PMK-172/2023.
- The result of the APA review negotiation will be set forth in the amendments to the Text or the Mutual Agreement.
- As stated above, APA should be a cooperative process in which the transfer pricing issues are discussed openly, and access to relevant supporting information and documentation is made available. Upon the evaluation of APA, DGT, therefore, may cancel the agreement in the APA if the APA is ultimately known to be not made in good faith, for instance: a. Taxpayer provides information and/or evidence or statement that is not true or not inaccordance with the actual conditions; and/or b. The Taxpayer does not provide information/evidence/statement which is known (or should be known) by Taxpayer and may affect the outcome of the agreement to DGT regardless of whether it is requested by DGT.
- In practice, when considering reviewing or cancelling the APA, DGT will consult with the Taxpayer and with the Competent Authority of the treaty partner involved. Where a date of cancellation of the APA needs to be determined, it will be determined by the nature of the event that led to the cancellation.
- 13 kali dilihat