The Full Federal Court has granted Oracle a stay of its domestic tax proceedings so the company can pursue the Mutual Agreement Procedure (MAP) under the Australia–Ireland tax treaty. The dispute concerns whether payments from Oracle Australia to Oracle Ireland should be treated as royalties, affecting how they are taxed under the treaty.
Angelina Lagana, partner at Corrs Chambers Westgarth, said the ruling preserves taxpayers’ choice in managing cross-border disputes.
“Taxpayers are not free to run MAP and domestic litigation at the same time, but the choice of remedy generally remains with them,” she said.
She noted the decision confirms MAP as a genuine dispute-resolution mechanism available under Australian tax treaties.
Nitin Saby, former ATO director and special tax counsel at Wise Tax Advisors, said the case strengthens multinationals’ ability to use MAP before engaging in domestic litigation.
“This judgment elevates MAP from a secondary option to a strategically superior forum for resolving double-tax and transfer pricing issues,” Saby said.
“Clients can now initiate MAP with confidence, knowing courts will typically pause litigation until MAP concludes.”
Saby added the decision could lead to more MAP filings in complex international tax matters.