Brussels, 16/02/2016 (Agence Europe) - On Tuesday 16 February, the European Commission launched a public consultation on the tax dispute resolution mechanism resulting from double taxation affecting companies of different member states. This consultation will run until 10 May.
According to the Commission, earlier studies confirmed that the existing tools to avoid double taxation are inadequate. It also wishes to take account of action 14 of the OECD BEPS action plan on fighting aggressive corporate tax planning. The Commission has pledged a legislative proposal for this year.
On behalf of the ACCA, which represents accountancy experts at global level, Chas Roy-Chowdhury told EUROPE that he intends to recommend a binding arbitration clause faster than the OECD, i.e. within the 12 months. “We also believe that any new EU rules should stop member states from blocking recourse to arbitration, as it currently happens widely across the EU”, Roy-Chowdhury added.
The options put up for consultation by the Commission will encourage the member states to change their bilateral tax agreements once a new European legal instrument enters into force. (Original version in French by Elodie Lamer)