IEIM130300 | Exchange of Information: Joint audits

There will be circumstances with multinational enterprises, and some high- net worth individuals with complex international affairs, where it will be beneficial for multiple tax authorities to work together in a joint audit. These are sometimes called Multilateral Controls, or MLCs.

This sort of closer working is increasingly common, particularly where there are transactions that cross borders, or the business has a company or team that performs the same functions in multiple territories (such as a group services company that performs services for trading entities across Europe).

Two jurisdictions can work together on a joint audit providing the bilateral agreement between them allows for this. Joint audits with more than two participating jurisdictions will need to use a multilateral agreement that allows for such collaboration, such as OECD Multilateral Convention on Assistance in Tax.

Joint audits must be facilitated by a Competent Authority. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)