An MNE that decides to participate in ICAP
would be expected to provide the information and documentation packages
prescribed in Chapter 6 of the ICAP 2.0 Handbook.
There are four stages in the ICAP – (1)
Pre-entry; (2) Scoping; (3) Risk assessment and issue resolution; and (4)
Outcomes.
In line with the voluntary nature of ICAP, at
the end of the pre-entry stage, the MNE will be asked whether it wishes to
proceed to the scoping stage with the covered tax administrations that have
indicated a willingness to participate in the MNE’s ICAP risk assessment. At
the end of the scoping stage, the MNE will also be asked whether it wishes to
proceed to the risk assessment stage with the finalised scope of transactions
or risk areas and terms of its ICAP risk assessment. If the MNE wishes to
withdraw from the ICAP, it may do so at either of these two stages.