HMRC to implement EU double tax dispute resolution system

Pedro Gonçalves
HMRC to implement EU double tax dispute resolution system

HMRC have published a policy paper to provide a more efficient framework for the resolution of double taxation disputes arising between the UK and other member states post-Brexit.

HM Revenue and Customs in a policy paper outlined its plan to implement the Union Arbitration Convention through regulations, which will provide a mechanism for European Union member countries to resolve tax disputes with the island nation. HMRC plans to publish the regulations by the end of this month. They will apply to questions in dispute relating to income or capital earned in a tax year beginning on or after Jan. 1, 2018.

The new regulations do not replace the existing bilateral tax treaties or the Union Arbitration Convention, but are another option for businesses and individuals to consider.

The measure is triggered at the behest of an individual, not HMRC. In 2018, HMRC received 154 requests for assistance with double tax dispute resolution where the treaty partner was another Member State, together with 64 requests from business relating to transfer pricing issues and a further eight business requests for other reasons.

Unlike existing bilateral tax treaties, the new measures include a provision for mandatory and binding arbitration.


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