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New rules to cover double taxation obstacles for business.
The European Council has agreed a new system to improve tax disputes resolution. It is expected to apply from 1 January 2018.
It will also cover issues relating to double taxation which can be a major obstacle for businesses, creating uncertainty, unnecessary costs and cashflow problems.
The improvements will cover a range of cases and member states will have clear deadlines to agree on a binding solution. They will have a legal duty to take conclusive and enforceable decisions.
The agreement will ensure that taxpayers experiencing tax treaty disputes can initiate a procedure under which the relevant member states must try to resolve the dispute amicably within two years. If no solution has been found, an advisory commission must be set up to arbitrate. Failing this, the taxpayer can bring an action before the national court.
There are about 900 double taxation disputes in the EU worth worth €10.5bn.
