- 1.
- The competent authority of each State will identify independently taxpayers it intends to propose for a simultaneous examination. 2.
- The competent authority of each State will inform its counterpart in the other State of its respective choice of potential cases for simultaneous examinations using the selection criteria described below. It will explain, as far as possible, why it has chosen these cases and provide the information leading to its proposals, together with any other relevant information, as well as its statute of limitation applicable to the cases proposed for simultaneous examinations. 3.
- Each State will determine if it wishes to participate in a particular simultaneous examination. 4.
- The competent authority requested to participate in a simultaneous examination will consider the information in conjunction with information from its own sources and will confirm in writing to its counterpart its agreement or refusal to undertake a specific simultaneous tax examination [mentioning the taxpayer(s), taxes and tax years involved]. Before making its confirmation, the competent authority will seek to obtain any information that it requires in order to reach a decision, either under its domestic laws or under the provisions of Article 26 (Exchange of Information) of the Convention. 5.
- The requested competent authority will indicate a designated representative who will have functional responsibility for directing and coordinating the examination. The applicant competent authority will also indicate in writing a designated representative. 6.
- The competent authorities may then present to each other requests for the exchange of information or provide each other with information spontaneously under and in conformity with the Convention. 7.
- The designated representatives of the competent authorities will take care of the practical aspects of the simultaneous examination (timetable, periods to examine, State having the functional responsibility for coordinating the examination). If needed and if legally possible, representatives of the competent authorities of the foreign State may be allowed in the other State. 8.
- The prerequisite and therefore essential condition of selection is that the tax years will be open for examination in the two States. 9.
- The competent authority of each State may, by a declaration addressed to its counterpart in the other State, indicate that, according to its internal legislation, it will inform its residents or nationals before transmitting information concerned in conformity with the Article 26 (Exchange of Information) of the Convention.
