The European Commission today issued a reminder that new EU rules are effective today. The EU rules are to provide for quicker and more effective resolution of tax disputes between EU Member States, thus allowing greater tax certainty for businesses and individuals experiencing double taxation issues.
As noted in the EC release, the tax dispute resolution directive will allow businesses and individuals to resolve disputes related to tax treaties more swiftly and effectively, in particular those related to double taxation. The new directive introduces more transparency concerning tax disputes in the EU.
The new directive on tax dispute resolution mechanisms imposes a duty on EU Member States to make conclusive decisions:
The new directive applies to complaints submitted beginning from 1 July 2019 relating to questions of dispute in matters of income or capital earned in a tax year commencing on or after 1 January 2018. The competent authorities can also agree to apply the directive to any complaint submitted prior to that day or to earlier tax years.
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