Published in: IAFEI Quarterly (43rd Issue) - 11 April 2019
lnternational tax disputes arise, in principle, where
In addition, such disputes can also arise without violation of the DTC (including equivalent instruments), if there is disagreement or uncertainty in relation to the correct application of its provisions. In a nutshell, international tax disputes can arise, if there is a framework agreed between two or more jurisdictions regarding the exercise of their taxing power in cases involving both of them (in principle in a DTC).
In their vast majority, existing DTCs previde for the resolution of the above disputes through the so-called mutuai agreement procedure or MAP, following the respective provisions of the OECD Model Tax Convention (hereinafter the "OECD Model"). MAP aims at dispute resolution through agreement between the national tax authorities involved, on the basis of dialogue and cooperation, following request by the taxpayer affected.