10/10/2017 (Agence Europe) – On Tuesday 10 October, the Council of the EU adopted without debate the proposed directive to set up a mechanism to resolve tax disputes resulting from dual taxation affecting companies from different member states (see EUROPE 11794). Currently, the European Union has only an ineffective arbitration agreement and procedures can be very long, taking up to ten years. The draft directive introduces a mutual agreement procedure initiated by a complaint by the taxpayer, whereby member states may cooperate freely and reach agreement within two years (see EUROPE 11654). If this procedure breaks down, it will move to a dispute resolution procedure in which the competent national authorities involved will make a binding definitive decision. The directive provides for an automatic arbitration procedure within 15 months if the states fail to agree amongst themselves. (EL)