OECD COVID-19 TPG paragraph 100

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In the context of the COVID-19 pandemic, there are two situations which may lead to cancelling an APA when it is established that: in FY2020

(i) there is a material breach in an APA’s critical assumption as a result of a change in economic circumstances; or,

(ii) the taxpayer failed to materially comply with any term or condition of the APA.

Cancellation would not, however, be automatic and the tax administration may waive cancellation under certain circumstances.52 Cancellation would have the effect of ending an APA on an agreed date or from a particular tax year or accounting period (e.g. after FY2019).

52 Paragraph 81 Annex II to Chapter IV of the OECD TPG.

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