EU Commission proposes to speed resolution of double tax disputes

The EU Commission has today released a proposed directive designed to strengthen existing mechanisms to resolve tax disputes between EU countries that result in double taxation to multinational companies.

The proposal would extend EU arbitration to cross-border tax disputes other than transfer pricing disputes. It also addresses shortcomings in the existing Union Arbitration Convention, imposing clearer and enforceable deadlines on member states to reach agreement on a solution to double taxation.

A maximum period of 15 months is allowed for the arbitration phase of a tax dispute under the proposed directive.

The Commission proposal was accompanied by proposed directives for a Common Consolidated Tax Base, a Common Consolidated Corporate Tax Base directive, and an Anti-Tax Avoidance Directive dealing with hybrid mismatches.

See:

• Proposed directive

• Annex

• European Commission

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