OECD Arbitration in Tax Treaty Law

1. S. 210Introduction

This chapter will analyse the framework of the arbitration procedure as a means to resolve treaty disputes, as set forth in the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the Multilateral Instrument, MLI). The examination is intended as a critical analysis, encompassing the scope and content of the relevant provisions and delineated procedures, while also questioning the effectiveness of the legislative framework and contemplating possible recommendations and solutions.

The chapter begins with an overview of BEPS Action 14 and its implementation, while Section 3. focuses on the limits of the opt-in provision contained in Part VI of the MLI. Section 4. outlines the core arbitration provision (encompassing the personal, material and temporal scope of the procedure), Section 5. describes the types of arbitration proceedings, Section 6. considers the appointment of arbitrators and Sections 7., 8. and 9. deal with, respectively, the confidentiality, conclusion and cost of arbitration proceedings. Section 10. addresses the compatibility between Part VI and the provisions of covered tax agreements. Finally, the conclusions of...