Instruction on Method of Initiating Mutual Agreement Procedure in Accordance with Double Taxation Treaties in Force in Bosnia and Herzegovina
Tax news, March 2017
In this issue: Instruction on Method of Initiating Mutual Agreement Procedure in Accordance with Double Taxation Treaties in Force in Bosnia and Herzegovina (“BiH”)
On 22 December 2016, the Ministry of Finance and Treasury of Bosnia and Herzegovina, issued the Instruction on Method of Initiating Mutual Agreement Procedure in Accordance with Double Taxation Treaties in force in BiH, number 10-17-1-10432-2/16 (“Instruction”).
Instruction regulates that where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of agreement concerned, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under Article 24 Paragraph (1) of Double Taxation Treaty, to that of the Contracting States of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.
In that context, competent authority (“The Ministry of Finance and Treasury of BiH”), at the request of the person, initiates the mutual agreement procedure with other Contracting State, if the request appears to be justified. The person shall be notified on competent authority actions, no later than 3 months from the date of receipt of the request to initiate the mutual agreement procedure.
The competent authorities shall endeavour to resolve by mutual agreement any difficulties arising as to the interpretation or application of the agreement concerned. Those authorities may also consult together for the avoidance of double taxation in cases not provided for in the Agreement.
The Instruction entered into force on the 22 December 2016.
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