The Transposition Of The Eu Directive On Tax Dispute Resolution Mechanisms In Spain

This article briefly reviews the tax resolution procedures available within Spanish legislation, analysing how the transposition of Council Directive 2017/1852 will affect tax dispute resolution procedures in Spain.

In this article, the author examines the Spanish efforts to transpose the EU Dispute Resolution Directive (2017/1852) into Spanish law.

This article examines the newly adopted Directive on tax dispute resolution mechanisms in the European Union, discussing the reasons for its enactment, the disputes it covers, the specific procedures it creates, and the timing of its implementation.

With the Council's adoption of the Directive on Tax Dispute Resolution Mechanisms on 10 October 2017, the resolution of tax disputes among Member States enters a new phase. What originally started in 1976 with a proposal for a directive to settle transfer pricing disputes by means of arbitration has led to the adoption of a directive in 2017 for all disputes among Member States on the interpretation and application of their mutual tax treaties on income and capital. This Directive aims at improving existing dispute resolution mechanisms contained in these tax treaties and the EU Arbitration Convention. To that end, four specific objectives have been defined in the directive's preamble, which are (1) broadening the scope of application of the EU Arbitration Convention to all disputes concerning the application and interpretation of tax treaties between Member States; (2) ensuring legal certainty for taxpayers; (3) ensuring effectiveness and efficiency; and (4) ensuring transparency. This article examines whether each of these objectives is attained in light of the experiences gained with the EU Arbitration Convention.

In the context of the OECD BEPS Plan and the actions undertaken by the European Union to achieve a fair and efficient corporate tax system, the enhancement of dispute resolution mechanisms between tax administrations is practically the only action aimed at boosting taxpayers' rights, which is evidence of the imbalance between the goal of a fair and efficient system and the corresponding increase in the burden on taxpayers. It is without doubt that the asymmetrical implementation of the BEPS recommendations derived from this framework, both at a domestic and at a double taxation convention (DTC) level, will generate a significant increase in disputes and hence the risk of double taxation will rise. This is why the adoption of adequate tools to mitigate such a scenario is more necessary than ever.In particular in the context of the European Union, the existence of double taxation, derived from the different interpretation and enforcement of a set of rules aimed precisely at eliminating it, arises as a meaningful impediment to the adequate functioning of the single market, as it generates distortions regarding the adoption of investment and finance decisions. This is why the recent enactment of the Directive on tax dispute resolution mechanisms in the European Union (hereinafter the Directive), has to be praised as a crucial achievement in removing unwanted double taxation. The adoption of such an instrument will enable persons affected by double taxation derived from a disparate interpretation or qualification conflict in the context of a DTC signed by EU Member States to initiate a mutual agreement procedure (MAP) between the involved tax authorities and an arbitration procedure should they not reach an agreement. This possibility significantly increases the chances that the double taxation outcome is resolved. Spain must transpose the Directive into domestic law before 30 June 2019 by modifying its existing rules in this area.In this contribution, it will be shown that double taxation has been a relentless concern within the European Union and that the Arbitration Directive is the latest achievement in a long and often unsuccessful path the European Commission has been weaving for decades to address this problem. Also, the most controversial aspects of the Directive will be analysed. Despite being a clear accomplishment overall, this instrument also presents certain relevant issues. Specifically, the scope of the Directive, the relationship between the involved tax authorities and the taxpayer throughout the whole process, and the relationship between the Directive procedures and other analogous procedures will be dealt with.

Dispute Resolution under Tax Treaties and Beyond is a detailed and comprehensive study on tax dispute resolution mechanisms, with a specific focus on tax treaty disputes.

The number of international tax disputes is constantly increasing. This is a logical consequence of the pressure that is exerted on the global tax system by a rise in the number of internationally active and mobile taxpayers and tax competition between states on the one hand. On the other hand, the implementation of measures to tackle base erosion and profit shifting (BEPS) by multinational enterprises already gives rise to further disputes and another increase of disputes might arise from the latest reforms of the international tax system, namely the Two-Pillar-Solution to address the tax challenges arising from the digitalisation of the economy. Against this background, the time is right for an institutionalised international tax dispute resolution mechanism that takes into account the interests of taxpayers, states, and the public and allows for a swift and binding resolution of international tax disputes ¬– exactly what this timely and thoroughgoing book offers. A comprehensive overview of existing international tax dispute resolution mechanisms – and an analysis of their procedural rules, advantages, and disadvantages – leads to a deeply informed proposal on how they can be further developed in a way that ensures greater fairness and equity for all stakeholders. Among the lines of conflict that characterise international tax disputes, the author sheds clear light on how improvements in the design of dispute resolution mechanisms may be found. This includes these questions: How should a dispute resolution mechanism be structured? Should there be a mandatory resolution if the states cannot agree? In which way should taxpayers participate in the procedure? Should agreements and decisions be published? Should there be an institution to administer the procedure? The book concludes with a draft convention that would implement the author’s suggestions. Tax lawyers and other tax professionals worldwide, as well as national tax authorities, will benefit greatly from this book. They will deepen their understanding of the variety of existing tax dispute resolution mechanisms and discover ways to strengthen them. Academics will find ample room to reflect on the key design elements of such mechanisms and how to improve them.

Offers an account of ODR for consumers in the EU context, presenting a comprehensive investigation of the development of ODR for business to consumer disputes within the EU. This book examines the role of both the European legislator with the Mediation Directive and the English judiciary in encouraging the use of mediation.

Following each Member State's need to rebuild a strong and stable economy after the 2007 financial crisis, the European Union (EU) has developed a robust new transparency framework with binding anti-abuse measures and stronger instruments to challenge external threats of base erosion. This is the first and only book to provide a complete detailed analysis of the Anti-Tax Avoidance Package and other recent and ongoing European actions taken in direct taxation. With contributions from both prominent tax academics and Spain's delegates to the European meetings where these rules are debated and promulgated, the book covers such issues and topics as the following: – the development of the EU Strategy towards Aggressive Tax Planning; – recent tax-related jurisprudence of the European Court of Justice; – the Anti-Tax Avoidance Directive; – tax treaties and non-tax treaties with tax consequences both between Member States and between Member States and third countries; – code of conduct for business taxation; – automatic exchange of information; – country-by-country reporting; – arbitration in tax matters; – external strategy for effective taxation regarding non-EU countries; – competition and state aid developments in direct taxation; – the Common Consolidated Tax Base; and – digital significant presence and permanent establishment. As the EU pursues its ambitious tax agenda, taxation's contribution to EU growth and competitiveness and its part in relations with the rest of the world will come into ever clearer focus. In addition to its insights into these trends, the book's unparalleled practical information and analysis will be of great value to tax practitioners dealing with investment analysis, tax planning schemes, and other features of the current international tax landscape.