Since the last peer review period, Canada completed the ratification process for the MLI, which entered into force for Canada on 1 December 2019. Canada also completed the ratification process for its treaty with Madagascar, which entered into force on 3 June 2020. Canada remains committed to the BEPS minimum standards and continues to be engaged in bilateral negotiations to bring its treaties in line with this standard, in accordance with the plan outlined in Canada’s stage 2 peer review report.
Making Dispute Resolution Mechanisms More Effective – Consolidated Information on Mutual Agreement Procedures 2023
OECD/G20 Base Erosion and Profit Shifting Project
Canada
Recent developments relating to MAP in Canada prior to 15 August 2023
Developments relating to MAP in the tax treaty network
Other developments relating to MAP
Canada has completed the update to its MAP guidance on 1 June 2021 to reflect the implementation of the BEPS minimum standards and the ratification of the MLI.
Canada has also completed changes to its inventory management system to ensure an accurate reporting of MAP statistics and changes to standard correspondence templates.
Latest Action 14 Peer Review report
13 August 2019 - https://doi.org/10.1787/67dba2bb-en
Tax treaty network of Canada
96 treaties, applicable to 96 jurisdictions (covering all treaties signed, although not necessarily in force)
status of MLI: in force.
Table 1. State of play of Canada's tax treaty network
Source: OECD
Canada's MAP programme
Organisation of competent authority function
Competent Authority Services Division (CASD):
46 persons:
one head of unit (Director)
45 persons working on MAP cases:
30 [Transfer pricing MAP/APA sections, exclusively attribution/allocation cases]
nine [MAP technical section, exclusively Other cases]
contact persons for MAP requests:
Director, Competent Authority Services Division
344 Slater Street, Canada Bldg., 18th Floor, Ottawa, Ontario K1A 0L5
email: CPMAPAPAG@cra-arc.gc.ca
Requests can also be made electronically using the Canada Revenue Agency E-Services – see following link for more information: https://www.canada.ca/en/revenue-agency/services/e-services.html.
Competent Authority Policy and Treaty Advisory Section:
eight persons:
one head of unit (Director)
seven persons working on treaty negotiations, developing treaty policy and resolving interpretative issues with respect to tax treaties (among which six persons work on other tasks as well).
contact persons for requests concerning general application or interpretation of Double Tax Treaties (DTT):
Director General, Legislative Policy Directorate, Competent Authority Policy and Treaty Advisory Section
320 Queen St., Place de Ville Tower A, 6th Floor, Ottawa, Ontario K1A 0L5.
Figure 1. Competent Authority Organisational Structure
Source: OECD
Table 2. Guidance on the MAP process
Overview of Canada's MAP Statistics for 2022
Please refer to https://www.oecd.org/tax/dispute/map-statistics-canada.pdf for details with respect to Canada's MAP Statistics.
Figure 2. Cases closed in 2022
Source: OECD
Figure 3. Evolution of Canada's MAP caseload (2016-22)
Source: OECD
Table 3. Overview of Canada’s MAP caseload for 2022
Source: OECD
Table 4. Canada’s average time to resolve MAP cases in 2022
Source: OECD