EU member states formally approve new rule for better resolution of tax disputes which will give taxpayers much more certainty when it comes to seeking resolution to their interpretation of tax treaties or double taxation problems; Today’s agreement among EU Finance Ministers at Luxembourg ensures that taxpayers faced with tax treaty disputes can initiate a procedure whereby the Member States in question must try to resolve the dispute amicably within two years;
If at the end of this period, no solution has been found, the Member States must set up an Advisory Commission to arbitrate; If the Member States fail to do so, the taxpayer can bring an action before the National Court to do so. Advisory Commission to be comprised of 3 ‘independent’ members and representatives of the Competent Authorities in question and it will have 6 months to deliver a final, binding decision which will be immediately enforceable and must resolve the dispute. This is an important step to allow EU citizens and businesses alike to have fair tax treatment.