a. Notification of the agreement between competent authorities to the Spanish taxpayer
Where the mutual agreement procedure has been initiated with the Spanish competent authority and in any case if the mutual agreement procedure relates to transfer pricing, the Spanish competent authority will notify the Spanish taxpayer of the agreement reached by the competent authorities in the mutual agreement procedure (Articles 16.3 and 54.3 of the Regulation on Mutual Agreement Procedures).In the case of mutual agreement procedures conducted under the mechanism provided for in the Directive, that notification must take place within thirty calendar days.
As a general rule, where the agreement reached by the competent authorities eliminates the double taxation or taxation not in accordance with the convention, notification of the agreement to the Spanish taxpayer will have the following content:
An indication of the agreement reached, as well as the corresponding adjustment agreed in the case of transfer pricing.
A request for the acceptance or rejection of the content of the agreement.
Where the taxpayer accepts the agreement, their acceptance must include an express waiver of any pending appeals lodged in relation to the matters resolved by the procedure, as well as evidence of that waiver.That may be done, ordinarily, by providing evidence of having submitted a letter of withdrawal to the relevant court or tribunal.
Reference to the fact that, once the agreement has been accepted and, where applicable, once any appeals lodged by the Spanish taxpayer and, where applicable, those of the other states concerned have been waived, the procedure will be considered closed and the competent body to implement it in Spain will be informed of that fact.
Reference to the fact that it is not possible to lodge any kind of appeal against the agreement, without prejudice to the avenues of appeal available against the administrative decision or decisions issued to implement the agreement.This is established in section 5 of the First Additional Provision of the revised text of the Non-Residents' Income Tax Act.
Lastly, reference to the fact that agreement does not constitute a precedent, either for the taxpayer or for the tax authorities.