Emergence of new examination approach – Joint Audits

Tax Controversy & Dispute Resolution ()

Collaboration between revenue authorities around the globe has been noticeably increasing.Many countries have been engaging in traditional information exchange under recent and long-standing tax treaties and agreements, as well as other collaborative activities.Countries have also been engaging in simultaneous tax audits which involve a situation where two or more countries examine a taxpayer simultaneously, each in its own territory, where there is a common or related interest and a view to exchange the information they obtain.

One of the fastest emerging trends with respect to audit techniques is the pursuit of joint audits where an individual or business is subject to a coordinated audit using a single audit team comprised of representatives from two or more jurisdictions ("Joint Audits").This new approach stands in contrast to a more typical situation where the same taxpayer is subject to separate audits with respect to the same transaction or items of income or deduction by two or more countries.Joint Audits are the next step to even greater cooperation between taxing authorities -- a new era of coordinated action.