On 23 May 2017 the European Council agreed a new system for resolving double taxation disputes within the EU.

The proposal (here) sets out to improve the mechanisms used for resolving disputes between member states when disputes arise from the interpretation of agreements on the elimination of double taxation.

It builds on convention 90/436/EEC on the elimination of double taxation in connection with the adjustments of profits of associated enterprises.  The table (here) presented by the Commission highlights the developments anticipated from the current framework.

One item that will be particularly welcomed by taxpayers is that, if a mutual agreement procedure fails to produce a result, an arbitration procedure will be launched to resolve the dispute within specified timelines. The Council will adopt the directive once the European Parliament has given its opinion.

For further information, please contact Paul Hale or Enrique Clemente.