The mutual agreement procedure and arbitration of double taxation disputes

It is in the interest of most states to eliminate double taxation (i.e. the payment of the same tax in two jurisdictions) of transnational commercial enterprises. Because such disputes involve, on the one hand, the state imposition of taxes, a right universally asserted by all states, and private en...

Full description

Saved in:
Bibliographic Details
Main Author: Bantekas, Ilias
Format: Article
Language:English
Published: 2008
Subjects:
Double taxation
arbitration
OECD Model Tax Convention
dispute settlement
Mutual Agreement Procedure
creeping expropriation
bilateral tax treaties
GATS
Doble tributación
arbitraje
Convenio Modelo sobre impuestos de la OECD
solución de controversias
procedimientos de mutuo acuerdo
expropiación incrementada
tratados bilaterales de impuestos
Online Access:https://dialnet.unirioja.es/servlet/oaiart?codigo=4941862
Source:ACDI - Anuario Colombiano de Derecho Internacional, ISSN 2145-4493, Vol. 1, 2008, pags. 182-204
Tags: Add Tag
No Tags: Be the first to tag this record
The mutual agreement procedure and arbitration of double taxation disputes
Summary: It is in the interest of most states to eliminate double taxation (i.e. the payment of the same tax in two jurisdictions) of transnational commercial enterprises. Because such disputes involve, on the one hand, the state imposition of taxes, a right universally asserted by all states, and private entities on the other, taxation disputes between such parties are not, on their face, easily susceptible to arbitration. This article analyzes two dispute settlement procedures-the OECD First Model Tax Convention and a similar EU Convention-with the exclusive focus on disputes relating to the imposition of double taxation. It will look at the ways in which state roles may vary under these procedures from assisting in the negotiation process to taking a part similar to, but with important differences from, diplomatic protection on behalf of an affected enterprise. The article will examine the situations under which the settlement procedure is required and/or available, how the procedures are triggered, the obligations and parts played by the parties, the means by which the disputes are resolved (from negotiations to tribunals) and the limitations of the procedures. Are they “taxpayer friendly”? As a result the reader may draw comparisons between the two procedures. Finally, the article will look at the proposed OECD Arbitration Clause which is intended to be incorporated into Article 25 of the OECD Model Tax Convention as well as how these mechanisms relate and/or conflict with bilateral tax treaties and the GATS.

Similar Items