Tax Authority Investment in Resolving Global Disputes Pays Off

A first-ever decline in tax cases pending under global dispute resolution programs last year can be attributed to tax authorities devoting more time and resources to resolving such cases, according to practitioners.

The Organization for Economic Cooperation and Development reported last month that cases under the Mutual Agreement Procedure had fallen for the first time in 2023 by 3.8%. New MAP cases involving transfer pricing have also dropped by 16%, according to the OECD.

Transfer pricing refers to the way corporations value transactions between related companies.

“A lot of tax administrations have made it a priority to add additional resources ...