6 Dispute resolution for issues related to Amount A The scope of the issues that may be submitted to the dispute resolution mechanism was explained in an internal paper delivered to members of the Inclusive Framework that has not been made public as of November 5th, 2021. An explanatory parenthesis in the Statement lists transfer pricing and business profits disputes as examples of what may constitute issues related to Amount A.12 In practice, what this means is that unilateral transfer pricing adjustments and profit attribution audits performed by G­24 tax administrations are likely to be considered“issues related to Amount A,” and are therefore subject to the mechanisms envisioned for this type of dispute. In other words, if a tax administration were to determine that a large MNE should attribute greater profits(or smaller losses) to the local office because certain expenses had not been borne by that specific permanent establishment, then the MNE could request a determination that the adjustment be considered an“issue related to Amount A” in order to remove it from the jurisdiction of domestic courts. However, given the formulary nature of Amount A, it seems logical that disputes can only be related to Amount A if they affect financial profits before taxes, which is the point of departure for the calculation of Amount A. As per the Statement, the determination of whether a dispute affects pre-tax profits will be made in the mandatory binding mechanism for OECD and G-20 countries, and electively for the other members of the IF that signed the agreement and that fulfill both conditions, namely, that they obtained deferral for the Action 14 Peer Review and that they have a low MAP inventory. Below is a list of G-24 member countries and observers with their current status in relation to the Pillar One certainty mechanisms: Table 1: G-24 Member country status as of February 2022 G-24 Member Country *G-24 country observers Angola* Argentina Brazil China* Colombia Cote d’Ivoire Democratic Republic of Congo Pillar One dispute resolution status if MLC is ratified Elective binding mechanism applies(0 cases for 2020) Mandatory binding mechanism applies(G20) Mandatory binding mechanism applies(G20) Mandatory binding mechanism applies(G20) Mandatory binding mechanism applies(OECD) Elective binding mechanism applies(NA) Elective binding mechanism applies(NA) 12 OECD Inclusive Framework(8.10.2021). Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy. Available at https://www.oecd.org/tax/beps/statement-on-a-two-pillar-solution-to-address-the­tax-challenges-arising-from-the-digitalisation-of-the-economy-october-2021.pdf p.2.(last accessed on 21.2.2022)