The OECD on January 19 released comments to its discussion draft under action 14 of the base erosion profit shifting (BEPS) plan dealing with ways to improve cross-border tax dispute resolution mechanisms.
Fifty comment letters were received from business representatives and NGOs in response to the draft, which was published on December 18, 2014.
The draft identifies obstacles that prevent countries from resolving disputes through the mutual agreement procedure (MAP) dispute resolution process and asks for feedback on possible measures to address those obstacles.
The draft notes, however, that no consensus was reached among nations on moving towards adoption of universal mandatory binding MAP arbitration, so comments were requested on alternative measures to improve the process.
Business favors mandatory binding arbitration, and, as expected, many of the comments expressed disappointment with the decision to not move forward with that dispute resolution mechanism.
The draft guidance will be the subject of a January 23 public consultation in Paris which will be webcast live.
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