The OECD Dispute Resolution System in Tax Controversies

Marco Greggi and Anna Miotto ()
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Marco Greggi: Department of Law, University of Ferrara, 44121 Ferrara, Italy
Anna Miotto: Department of Law, University of Bergamo, 24121 Bergamo, Italy

Laws, 2024, vol. 13, issue 4, 1-15

Abstract: The article analyses the latest international tax law developments in dispute resolution settlement protocols and the need for effective multilateral solutions to prevent international double taxation. While several treaties currently minimise the risks of international double taxation, more must be achieved to provide judicial remedies in cases where two states want to tax the same income simultaneously. The OECD has developed a dispute resolution system based on arbitration clauses to be introduced in conventions signed by the state and a brand-new MLI (multilateral instrument) that should be applicable on a broader scale. These remedies have proven unsatisfactory as the taxpayer is not entitled to play any role in these (arbitration) procedures and cannot stand personally in front of any panel. The authors argue that such a scenario is inconsistent with the rule of law and the due process clauses and should be amended. Creating a supranational court with the entitlement to adjudicate the power to tax would be the optimal solution, but this would collide with the position of several states and their distrust of the international judiciary in tax matters.

Keywords: double taxation; arbitration; mutual agreement procedure; OECD; tax treaty; good faith; transfer pricing; taxpayers’ rights; international tax law; BEPS (search for similar items in EconPapers)
JEL-codes: D78 E61 E62 F13 F42 F68 K0 K1 K2 K3 K4 (search for similar items in EconPapers)
Date: 2024
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