The agreement clauses of most A.A. provide for specific deadlines for the filing of applications. The double taxation agreement is available on the website of the Federal Ministry of Finance. Some may argue that the advantage of an arbitration procedure lies in the fact that the existence of this mechanism provides an incentive for Member States to settle disputes before the expiry of the two-year period, which would be a success rather than a failure of the convention. However, the statistics also show that 202 cases had exceeded the two-year period, although it had been cancelled with the agreement of the taxable person. This indicates that taxable persons do not always consider the arbitration procedure available to them under the Convention as a desirable means of settling double taxation. The OECD publishes statistics on mutual agreement procedures in OECD member countries in the “MAGP statistics”. Cartel procedure (POP) – is the procedure implemented under international conventions which, in consultation with the competent authorities, applies with regard to the interpretation and application of the provisions of tax treaties or the double taxation convention with regard to the correction of the profits of affiliated enterprises (arbitration agreement) when a taxable person is taxed outside the scope of the provisions of the tax (or contracts or convention to address the issue of the elimination of double taxation. In particular, Article 19 of the MLI provides that a binding arbitration procedure must take place if the competent authorities are unable to reach agreement on the settlement of a case within two years of the commencement of a case. This is an important restriction in POPs cases in the past, as competent authorities were only required to try to resolve cases and disputes could not be resolved indefinitely.

Article 19 ensures that disputes related to the contract will be settled within a set period of time, making it a more attractive option for taxpayers. In addition, articles 20 to 25 set out the manner in which arbitration proceedings are to be conducted in practice. In the past, it was often practical restrictions or a lack of consensus on how to proceed that blocked the solution. The European Union (EU) Arbitration Convention includes a transfer pricing dispute settlement procedure for EU Member States. This procedure may apply in cases of double taxation between companies from different EU Member States. Requests for the opening of mutual agreement proceedings under a DBA or the European Arbitration Convention may be addressed to the following address of the BZSt: Jurisdiction of the BZSt for mutual agreement procedures, arbitration procedures and APAs The legal basis for a mutual agreement procedure is the DBA concerned. . . .