- 1.At the request of the competent authority of one of the States, the competent authority of the other State can allow tax officials of the former State to be present at the execution of those parts of a tax examination in the requested State, that are important to them.
- 2.Requests to allow the presence of tax officials of one State at the execution of an examination on the territory of the other State should be made in special cases. It especially concerns:
- a)cases in which there are indications for crossborder irregularities or the avoidance of taxes;
- b)complex cases that make the presence of the tax officials desirable;
- c)cases in which a limitation period threatens to expire and in which the presence of the tax officials may expedite the examination;
- d)examinations within the scope of an agreed bilateral or multilateral examination, including simultaneous tax examinations.
- 3. A request for the presence of tax officials will be submitted in writing by the competent authority of the requesting State. The request substantiates the desirability of the presence of tax officials and provides a short description of the case. The competent authority of the requested State decides on the request as soon as possible,however within two months (at the most) after receipt of the request.
- 4.All decisions regarding the execution of the tax examination are taken by the competent authority of the requested State. The competent authority of the requested State informs the competent authority of the requesting State about the details of an examination.
- 5.The competent authority of the requested State can refuse the request, giving the grounds for this decision.
