The Council Directive on tax dispute resolution mechanisms in the European Union entered into force in 1 July. It shall apply to complaints submitted from 1 July 2019 onwards on disputes relating to income or capital concerning the tax year commencing on or after 1 January 2018.

The Directive will significantly improve the tax dispute resolution process; alleviate instances of double taxation and provide for binding dispute resolution process with improved tax certainty for taxpayers. In particular, the Directive enacts an enforceable obligation on Member States to arrive at a resolution of all disputes within the scope of the directive, within two years in the process of a tax treaty dispute.

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