79. Another potential source of double taxation could occur where the simplified and streamlined approach is applied under the second option discussed in paragraph 7 and a primary adjustment is made by a tax administration to ensure that taxation is levied in accordance with the outcome of applying the simplified and streamlined approach. In such cases a request for relief from double taxation may be made to the counterparty jurisdiction under a Mutual Agreement Procedure. The relevant competent authorities should note the guidance in paragraphs 4.117 and 4.131 of these Guidelines in attempting to relieve double taxation. Where the counterparty jurisdiction has not agreed to apply the simplified and streamlined approach in a competent authority agreement with the jurisdiction making the adjustment, or to apply it specifically to resolve double taxation in the case under consideration,55See paragraph 79. the competent authority of the jurisdiction where the adjustment was made must substantiate its position based on the remainder of these Guidelines in any Mutual Agreement Procedure or resulting arbitration, noting the general principles articulated in paragraph 72 above.
- 55See paragraph 79.