On 10 October 2017, the Economic and Financial Affairs Council adopted a directive introducing a new system for resolution of disputes involving double taxation within the EU. The agreement on this directive had been reached earlier this year in May.

Member States are required to incorporate the directive in to national laws by 30 June 2019. The directive will apply to all double taxation disputes submitted from 1 July 2019 relating to tax year starting on or after 1 January 2018.

The directive provides for mandatory and binding dispute resolution mechanisms with clear time limits. Competent authorities will be required to accept or reject a complaint within six months. Accepted complaints are to be resolved within two years. If agreement is not reached, the directive provides for setting up an Advisory Commission (or an Alternative Dispute Resolution Committee) which would report its decision within six months of its establishment. For further information, please contact Paul Hale.