EU finance ministers formally adopted the new directive on double taxation dispute resolution mechanisms at the ECOFIN meeting on 10 October, following agreement to the draft directive in May. The directive introduces a binding procedure for resolving disputes within two years. If no solution has been found after the two-year period, the member states must set up an advisory commission to arbitrate, comprised of three independent members and representatives of the competent authorities in question. The commission will then have six months to deliver a final, binding decision. This decision will be immediately enforceable and must resolve the dispute.
Member states must implement the directive by 30 June 2019. It will apply to disputes involving tax years starting on or after 1 January 2018, although member states may agree to apply it earlier.
EU finance ministers formally adopted the new directive on double taxation dispute resolution mechanisms at the ECOFIN meeting on 10 October, following agreement to the draft directive in May. The directive introduces a binding procedure for resolving disputes within two years. If no solution has been found after the two-year period, the member states must set up an advisory commission to arbitrate, comprised of three independent members and representatives of the competent authorities in question. The commission will then have six months to deliver a final, binding decision. This decision will be immediately enforceable and must resolve the dispute.
Member states must implement the directive by 30 June 2019. It will apply to disputes involving tax years starting on or after 1 January 2018, although member states may agree to apply it earlier.
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