The mutual agreement procedure and arbitration of double taxation disputes

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ACDI - Anuario Colombiano de Derecho Internacional, ISSN 2145-4493, Vol. 1, 2008, pags. 182-204

English

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
GATS

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
GATS
Bantekas, Ilias
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 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.

Article

Bantekas, Ilias

Bantekas, Ilias

Bantekas, Ilias

The mutual agreement procedure and arbitration of double taxation disputes

The mutual agreement procedure and arbitration of double taxation disputes

The mutual agreement procedure and arbitration of double taxation disputes

The mutual agreement procedure and arbitration of double taxation disputes

The mutual agreement procedure and arbitration of double taxation disputes

mutual agreement procedure and arbitration of double taxation disputes

2008

https://dialnet.unirioja.es/servlet/oaiart?codigo=4941862

1709714420928610304

dialnet-ar-18-ART00007305932016-09-16The mutual agreement procedure and arbitration of double taxation disputesBantekas, IliasDouble taxationarbitrationOECD Model Tax Conventiondispute settlementMutual Agreement Procedurecreeping expropriationbilateral tax treatiesGATSDoble tributaciónarbitrajeConvenio Modelo sobre impuestos de la OECDsolución de controversiasprocedimientos de mutuo acuerdoexpropiación incrementadatratados bilaterales de impuestosGATSIt 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.Hay un claro deseo de los Estados de eliminar la doble tributación, el pago de un mismo impuesto en dos jurisdicciones diferentes, de las empresas multinacionales. Lo anterior en la medida que, por un lado, la imposición tributaria es un derecho universalmente aceptado del Estado, por el otro, los diferendos en materia tributaria no son fácilmente susceptibles de arbitraje. Este artículo analiza dos procedimientos de solución de controversias, el de la OECD, primer modelo de tratado sobre impuestos, y un convenio similar de la UE específico en solución de controversias relativas a la doble imposición. Analiza los diferentes mecanismos que el Estado puede asumir durante el procedimiento, marcando las diferencias con la protección diplomática en favor de la empresa afectada. El artículo examina las situaciones bajo las cuales se necesita y/o existe un proceso de solución de controversias; como se inician los procedimientos, cuales las obligaciones y las partes, los medios como se resuelven los conflictos, desde la negociación hasta acudir a un tribunal y las limitaciones de los procedimientos. En conclusión, el lector podrá analizar y comparar los dos procesos. Finalmente, el artículo nos muestra la cláusula de arbitraje que se pretende incluir en el artículo 25 del modelo de la Convención sobre impuestos así como si estos mecanismos son incompatibles con los tratados bilaterales en materia de impuestos y con los GATS.2008text (article)application/pdfhttps://dialnet.unirioja.es/servlet/oaiart?codigo=4941862(Revista) ISSN 2027-1131(Revista) ISSN 2145-4493ACDI - Anuario Colombiano de Derecho Internacional, ISSN 2145-4493, Vol. 1, 2008, pags. 182-204engLICENCIA DE USO: Los documentos a texto completo incluidos en Dialnet son de acceso libre y propiedad de sus autores y/o editores. Por tanto, cualquier acto de reproducción, distribución, comunicación pública y/o transformación total o parcial requiere el consentimiento expreso y escrito de aquéllos. Cualquier enlace al texto completo de estos documentos deberá hacerse a través de la URL oficial de éstos en Dialnet. Más información: https://dialnet.unirioja.es/info/derechosOAI | INTELLECTUAL PROPERTY RIGHTS STATEMENT: Full text documents hosted by Dialnet are protected by copyright and/or related rights. This digital object is accessible without charge, but its use is subject to the licensing conditions set by its authors or editors. Unless expressly stated otherwise in the licensing conditions, you are free to linking, browsing, printing and making a copy for your own personal purposes. All other acts of reproduction and communication to the public are subject to the licensing conditions expressed by editors and authors and require consent from them. Any link to this document should be made using its official URL in Dialnet. More info: https://dialnet.unirioja.es/info/derechosOAI