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HMRC internal manual

International Manual

HM Revenue & Customs
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The attribution of capital to foreign banking permanent establishments in the UK: Double Taxation Relief problems - Mutual Agreement Procedure

Where double taxation problems arise, because for example the foreign fiscal authority disputes the amount of capital attributed to a permanent establishment (PE), then the MAP Article of the relevant tax treaty can be invoked by the taxpayer to require the foreign fiscal authority and HMRC to use best endeavours to resolve the dispute by mutual agreement. This can apply both to the PE’s of non-resident banks and to UK banks. If any MAP claim is made it should be referred immediately to a Competent Authority at Business International.