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  • Processing an APA application

    As part of critically analysing and evaluating your APA application and any supporting information and documents you have provided, the APA team may ask you about particular aspects of the APA application.

    We may request you to provide explanation or further information or may seek to interview some of your key commercial staff. If our analysis and evaluation results in a different functional analysis conclusion to the one you describe in your APA application, we will discuss this with you with a view to reaching agreement.

    In the case of a bilateral or multilateral APA, the Australian CA will undertake any negotiation with the competent authority (CA) of the other tax treaty partners. Although you are not a party to these negotiations, in limited circumstances you may be requested to make a presentation on factual matters where both CAs agree that clarification of the fact pattern will enhance their level of understanding.

    The APA document

    For a unilateral APA, the form of the APA will normally be a document setting out the terms of the arrangement which is signed by both parties.

    For a bilateral or multilateral APA, when an agreed arrangement is reached by the CAs you will be given the opportunity to accept or reject that arrangement. Where you accept the APA negotiated and agreed between the CAs, you and the ATO will enter into a separate arrangement.

    The form of this arrangement could include any of the following:

    • a written agreement based on the terms of the APA agreed between the CAs signed by you and the Australian CA
    • a signed statement that you will abide by the terms of the arrangement negotiated by the CAs
    • some other documentation demonstrating your consent to abide by the terms of the APA agreed by the CAs.

    If you reject the arrangement negotiated and agreed between CAs, then the bilateral or multilateral APA will not proceed. You may wish to discuss with the APA team the options where you reject an agreement negotiated by the CAs. Options in this regard may include you agreeing to conclude the matter as a unilateral APA.

      Last modified: 09 Aug 2022QC 43088