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APA and MAP statistics

Last updated 26 July 2023

See statistics for our advance pricing arrangements (APA) and mutual agreement procedure (MAP) programs for the last 5 income years:

Key APA statistics for each income year (at 30 June)

APA program inventory

Agreed APAs have steadily decreased from 2019–20, but this is largely offset by a corresponding increase in APAs in progress across the same years. This was primarily driven by the receipt of several bilateral APA renewal requests following expiry of the prior APA. Program inventory has remained relatively constant since 2018–19.

Table 1: Agreed APAs, 2017–18 to 2021–22

Active APAs (signed and in effect

2017–18

2018–19

2019–20

2020–21

2021–22

Multilateral

1

1

0

0

1

Bilateral

55

58

58

46

34

Unilateral

54

57

59

55

54

Total

110

116

117

101

89

This data is displayed as a line graph in Figure 1 below.

Figure 1: Agreed APAs, 2017–18 to 2021–22

APAs in progress

The significant differential in unilateral APAs in progress in 2017–18 year was driven by increased demand as a result of multinational anti-avoidance legislation (MAAL) risk reviews.

Table 2: APAs in progress, 2017–18 to 2021–22

APAs in progress

2017–18

2018–19

2019–20

2020–21

2021–22

Multilateral

4

3

2

2

3

Bilateral

46

38

46

51

60

Unilateral

56

36

27

30

27

Total

106

77

75

83

90

This data is displayed as a line graph in Figure 2 below.

Figure 2: APAs in progress, 2017–18 to 2021–22

APAs completed

Total APAs completed each financial year has been relatively consistent, aside from 2020–21 which was negatively impacted by COVID-19 The decrease in completed APAs is attributable to a combination of factors stemming from COVID-19, including but not limited to:

  • clients delaying engagement with us where their business operations were affected by restrictions or measures to safeguard employees’ safety
  • our treaty partners facing similar challenges, in addition to travel restrictions leading to some delays in bilateral negotiations.

Table 3: APAs completed (new and renewals), 2017–18 to 2021–22

APA

2017–18

2018–19

2019–20

2020–21

2021–22

Average

APA in place

110

116

117

101

89

107

APAs completed (new)

9

14

11

6

2

8.4

APAs completed (renewal)

15

17

16

7

23

15.6

Total

24

31

27

13

25

24

This data is displayed as a bar chart in Figure 3 below.

Figure 3: APAs completed (new and renewals), 2017–18 to 2021–22

Table 4: APAs completed (by type), 2017–18 to 2021–22

APA

2017–18

2018–19

2019–20

2020–21

2021–22

Average

Unilateral

11

17

15

6

8

11.4

Bilateral

12

14

12

7

16

12.2

Multilateral

1

0

0

0

1

0.4

Total

24

31

27

13

25

24

This data is displayed as a bar chart in Figure 4 below.

Figure 4: APAs completed (by type), 2017–18 to 2021–22

APA average cycle times

For the 3 years from 2018–19 to 2020–21, an upward trend in cycle times for both unilateral and bilateral APAs was emerging. This trend reversed in 2021–22, where the average cycle times decreased. Average cycle time for the completed cases in the 2022 year was approximately 25 months across both unliteral APAs (UAPA) and bilateral BPAs (BAPA).

In 2020–21, the average time to complete bilateral and unilateral APAs was higher than usual due to several cases being ‘placed on hold’ to address collateral issues. With the small number of cases finalised in this particular year, the overall average cycle times were adversely affected. For those instances where complex collateral issues are identified, APA cases will cease while other compliance activity is being undertaken.

In 2021–22, we completed one multilateral APA which involved agreements with four different jurisdictions. The time taken to complete the negotiation was longer than what is generally expected for unilateral and bilateral APAs because of the challenging coordination process.

Table 5: APA average cycle time (months), 2017–18 to 2021–22

APA

2017–18

2018–19

2019–20

2020–21

2021–22

Unilateral

27.79

23.27

28.92

32.92

29.41

Bilateral

35.50

31.67

36.85

50.26

23.55

Multilateral

61.60

61.60

0

0

93.43

This data is displayed as a bar chart in Figure 5 below.

Figure 5: APA average cycle time (months), 2017–18 to 2021–22

Average bilateral APA cycle times at the jurisdictional level are influenced by the size of the APA program inventory with our treaty partner and at times, factors outside the control of the Australian Competent Authority.

Table 6: BAPA average cycle time (months), 2017–18 to 2021–22

Jurisdiction

Average cycle time (months)

Japan

18.3

Switzerland

22.4

New Zealand

24.1

Singapore

25.6

United States

34.0

United Kingdom

41.4

Other treaty partners (de minimis rule applies)

37.0

This data is displayed as a bar chart in Figure 6 below.

Figure 6: BAPA average cycle time (months), 2017–18 to 2021–22

APA requests

Over the last 5 years, there has been an upward trend in bilateral APA requests and a downward trend in unilateral APA requests. In 2021–22, 48 APA requests were received. The primary driver for this increase was a significant number of bilateral APA renewal requests from one treaty partner. This is a deliberate strategy between Australia and our treaty partner to more efficiently conclude APAs, providing earlier certainty and an enhanced client experience. New bilateral APA requests are also trending up. This indicates taxpayers are seeking to not only attain certainty on their pricing arrangements but increasingly, also seeking to mitigate the risk of double taxation.

The root cause for the trend down in unilateral APAs is the number of new unilateral APA requests received in 2017–18 and to a lesser extent, 2018–19. As previously noted, the large number of unilateral APA requests in those years was a result of MAAL risk reviews. New unilateral APA requests have fallen from 2019–20 but not as pronounced as from 2017–18 and are expected to flatten out moving forward.

Excluding 2021–22 bilateral APA renewals, the trend line for both unilateral and bilateral APAs is relatively flat. This indicates consistent year on year demand from taxpayers seeking to renew APAs and is reflective of the value taxpayers see in the APA program.

Table 7: Total APAs received by type, 2017–18 to 2021–22

APA

2017–18

2018–19

2019–20

2020–21

2021–22

Unilateral

22

12

10

12

12

Bilateral

15

12

21

14

33

Multilateral

1

0

0

0

3

Total

38

24

31

26

48

This data is displayed as a bar chart in Figure 7 below.

Figure 7: Total APAs received by type, 2017–18 to 2021–22

Table 8: New APAs received by type, 2017–18 to 2021–22

APA

2017–18

2018–19

2019–20

2020–21

2021–22

Unilateral

11

6

4

3

2

Bilateral

3

6

9

4

5

Multilateral

1

0

0

0

2

This data is displayed as a bar chart in Figure 8 below.

Figure 8: New APAs received by type, 2017–18 to 2021–22

Table 9: Renewal APAs received by type, 2017–18 to 2021–22

APA

2017–18

2018–19

2019–20

2020–21

2021–22

Unilateral

12

6

6

9

10

Bilateral

11

6

12

10

28

Multilateral

0

0

0

0

1

This data is displayed as a bar chart in Figure 9 below.

Figure 9: Renewal APAs received by type, 2017–18 to 2021–22

APAs by industry segment

The industry mix in the APA program over the last 2 years is relatively constant. Consistent with the nature of the Australian economy being an importer of goods and services, the bulk of APAs are in the wholesale, retail and services industry. These taxpayers are predominantly in the Top 1,000 population.

The Top 100 population segment is dominated by taxpayers from the mining, energy and water industry, and the banking, finance & investment, insurance and super funds industry.

Table 10: APAs by industry segment, 2020–21

Industry

2020–21

Banking, finance & investment, insurance, super funds

13

Mining, energy and water

28

Manufacturing construction and agriculture

32

Wholesale, retail and services

109

Other

1

Total

183

This data is displayed by percentage in Figure 10 below.

Figure 10: APAs by industry segment (%), 2020–21

60% wholesale, retail and services; 18% manufacturing, construction and agriculture; 15% mining, energy and water; 7% banking, finance & investment, insurance, super funds.

Table 11: APAs by industry segment, 2021–22

Industry

2021–22

Banking, finance & investment, insurance, super funds

17

Mining, energy and water

22

Manufacturing construction and agriculture

30

Wholesale, retail and services

110

Other

0

Total

179

This data is displayed by percentage in Figure 11 below.

Figure 11: APAs by industry segment (%), 2021–22

61% wholesale, retail and services; 17% manufacturing, construction and agriculture; 12% mining, energy and water; 10% banking, finance & investment, insurance, super funds.

Key MAP statistics for each income year (at 30 June)

Total mutual agreement procedure (MAP) cases continue to trend up from 2018–19. This is from a combination of increasing MAP requests and increasing average cycle times, primarily from our MAP cases with transfer pricing issues. Other than 2019–20, transfer pricing MAP cases generally make up more than 50% of the MAP program.

The increase in non-transfer pricing cases from 2019–20 is due to an increase in dual residency MAP requests, emanating from the MLI entering into force in Australia from 1 January 2019. Approximately 65% of our total inventory are inbound MAP cases.

As of 30 June 2022, transfer pricing MAP cases make up 59% of program inventory with 75% of the MAP program coming from either transfer pricing or dual residence issues.

Table 12: Active MAP cases, 2017–18 to 2021–22

Type

2017–18

2018–19

2019–20

2020–21

2021–22

Transfer pricing MAP cases

26

15

21

29

36

Non-transfer pricing MAP cases

14

13

25

18

25

Total MAP cases

40

28

46

47

61

This data is displayed as a bar chart in Figure 12 below.

Figure 12: Active MAP cases, 2017–18 to 2021–22

Table 13: MAP case inventory by treaty article, 30 June 2022

Treaty article

2021–22

Article 9 – Associated enterprises

36

Article 4 – Dual residency

10

Article 7 – Business profits

6

Article 4 – Residency

4

Article 15 –Employment income

2

Article 18 – Pensions

2

Article 20 – Students

1

Total

61

This data is displayed by percentage in Figure 13 below.

Figure 13: MAP case inventory by treaty article, 30 June 2022

Article 9 – associated enterprises 59%, Article 4 – dual residency 16%, Article 7 – business profits 7%, Article 4 – residency 3%, Article 15 – employment income 3%, Article 18 – pensions 2%.

Table 14: New MAP cases, 2017–18 to 2021–22

MAP cases

2017–18

2018–19

2019–20

2020–21

2021–22

Transfer pricing MAP cases

14

5

13

11

10

Non-transfer pricing MAP cases

9

13

25

22

30

Total MAP cases

23

18

38

33

40

This data is displayed as a bar chart in Figure 14 below.

Figure 14: New MAP cases, 2017–18 to 2021–22

Table 15: New MAP requests by treaty article, 2021–22

Treaty article type

2021–22

Article 4 – Dual residency

21

Article 9 – Associated enterprises

10

Article 4 – Residency

4

Article 18 – Pensions

3

Article 15 –Employment income

2

This data is displayed by percentage in Figure 15 below.

Figure 15: New MAP requests by treaty article (%), 2021–22

Article 4 dual residency 52%, Article 9 associated enterprises 25%, Article 4 residency 10%, Article 18 Pensions 8%, and Article 15 Employment income 5%.

Total MAP requests continue to increase annually from 2018–19. This is largely driven by high volumes of dual residency determinations resulting from the MLI requirements. These dual resident cases are mostly with New Zealand and United Kingdom. Transfer pricing MAP requests remain relatively steady.

Similar to MAP program inventory as at the end of the 2021–22 year, 75% of the new requests received relate to transfer pricing or dual residence tax treaty issues. However, unlike the breakup of the MAP program inventory, more than 50% of new MAP requests in the 2022 year relate to dual residence tax treaty issues.

Table 16: Completed MAP cases, 2017–18 to 2021–22

Type of MAP case

2017–18

2018–19

2019–20

2020–21

2021–22

Transfer pricing

6

16

7

3

3

Non-transfer pricing

11

14

13

29

23

Total

17

30

20

32

26

This data is displayed as a bar chart in Figure 16 below.

Figure 16: Completed MAP cases, 2017–18 to 2021–22

MAP average cycle times in months

Our MAP inventory continues to climb as we historically receive more MAP requests in any given year than we close cases. The large number of non-transfer pricing MAP cases closed in the last 2 years are dual residency MAP requests. These are often less complex and thus are determined in a far quicker timeframe than other MAP matters, particularly transfer pricing.

Table 17: MAP average cycles times (months), 2017–18 to 2021–22

Type of MAP case

2017–18

2018–19

2019–20

2020–21

2021–22

Transfer pricing

10.59

25.45

32.78

41.79

69.99

Non-transfer pricing

10.59

17.24

15.39

17.79

7.56

Total

10.59

21.62

16.15

11.62

14.76

This data is displayed as a bar chart in Figure 17 below.

Figure 17: MAP average cycle times (months), 2017–18 to 2021–22

MAP 5-year average cycle time

Transfer pricing MAP completions have declined in recent years but of note for the 2021–22 year, a number of MAP cases were agreed in principle with our treaty partners but were not administratively finalised by the end of the financial year. These will be reflected in the 2022–23 completions.

The average cycle time for transfer pricing MAP cases has trended upwards from 2017–18. These cases are generally complex and require greater resource investment and negotiation with our treaty partners. The average cycle time is also adversely affected by some outlier cases.

This is noticeable in 2021, when a 57-month aged case was successfully closed, and in 2022 when our oldest case (173 months) was closed and skewed the average monthly cycle times. Both cases experienced long delays in response times from our treaty partners. We believe the introduction of mandatory binding arbitration into many of our tax treaties via implementation of the MLI will reduce this occurrence moving forward. When we exclude the oldest case closed, we saw that the remaining transfer pricing cases were closed within the OECD recommended 24-month cycle for 2021–22.

Average MAP case cycle times at the jurisdictional level are influenced by a number of factors. Individual cases can skew average cycle times on small inventory, and some cycle times are impacted by factors outside the control of the Australian Competent Authority.

Table 18: Transfer pricing MAP case 5-year average cycle time

Treaty partner

Average cycle times (months)

New Zealand

14.8

USA

16.2

Germany

29.9

Singapore

32.2

India

38.8

France

45.1

Other treaty partners (de minimis rule applies)

20.2

Grand total

26.0

This data is displayed as a bar chart in Figure 18 below.

Figure 18: Transfer pricing MAP case 5-year average cycle time

Table 19: Non-transfer pricing MAP case 5-year average cycle time

Treaty partner

Average cycle times (months)

New Zealand

6.3

United Kingdom

8.4

Netherlands

14.0

Germany

14.8

Other treaty partners (de minimis rule applies)

21.0

Grand total

11.8

This data is displayed as a bar chart in Figure 19 below.

Figure 19: Non-transfer pricing MAP case 5-year average cycle time

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