EU Mutual Agreement Procedure for Raising Tax Disputes in Europe

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Europe wants to provide a quicker and more effective resolution of tax disputes between Member States; and will attempt to achieve this by implementing an EU-wide Directive which has now come into force. Officials hope the Directive will tackle issues surrounding double taxation (DTTs).

Taxpayers will be able to establish a mutual agreement procedure, whereby the relevant Member States should try to resolve the dispute out of court, amicably, and within two financial years of filing the claim. or refer the case to an Some 2,000 such disputes are currently pending in the EU, of which over 1,000 are over two years old. An EU independent advisory board will hopefully remove the delay.