G7 leaders agree to arbitration for double tax disputes, say OECD should monitor BEPS implementation

G7 leaders, in a joint declaration issued June 8, made a “commitment to establish binding mandatory arbitration to ensure that the risk of double taxation does not act as a barrier to cross-border trade and investment.”

The leaders also said they support work being done on binding arbitration as part of the OECD/G20 base erosion profit shifting (BEPS) project, and encouraged others to join them.

Separately, during a webcast update of the BEPS project held the same day, OECD officials announced that rules are being developed to provide binding mandatory arbitration as an option for countries as a part of BEPS plan output.

The heads of state of the G7 countries  — France, Germany, Italy, the United Kingdom, Japan, the United States, and Canada — also encouraged the G20 and OECD to set up a targeted monitoring process to ensure the effective implementation of the BEPS project.

The group further said they support transparency of beneficial ownership, encouraged implementation of automatic exchange of information, and reiterated their commitment to assist developing countries with international tax and in building their tax administration capacities.

See:

• Joint Statement

Related MNE Tax article:

• OECD BEPS project to provide for binding arbitration of tax disputes, limits on interest deductibility

 

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UPDATE (6/9/2015): Christian Aid sounds alarm over G7 plan for mandatory tax arbitration: Christian Aid, on June 9, called the G7 leaders’ recent expression of support for compulsory binding arbitration in multinational tax disputes “deeply troubling,” stating . . .