EU directive on tax dispute resolution enters into force

New rules aimed at resolving cross-border tax disputes within Europe entered into force today, the EU Commission announced.

Under a new EU directive on tax dispute resolution mechanisms, taxpayers facing double tax disputes within the EU that arise from bilateral tax treaties can, from July 1 onward, initiate a mutual agreement procedure forcing the countries to either resolve the issues or accept a decision be made by an independent advisory committee.

The new rules apply to tax disputes involving income or capital earned in a tax year commencing on or after January 1, 2018.