Abstract
Tax arbitration mechanisms, which are provided both at the international and EU level, play a significant role in solving international tax disputes. However, such mechanisms do not seem to be fully compliant with the concept of Rule of Law that seems to arise from International and EU Laws. In fact, tax arbitration mechanisms appear to lack —mainly— certain due process guarantees that allow such procedures to comply with the equality principle.
More specifically, tax arbitration involves almost only the States, which are the party to it, allowing them to exercise relevant powers and influence —for instance— over the arbitration body and the applicable procedural rules. However, the taxpayers will have to bear the consequences of the awards even if they are not parties to the procedures. Thus, taxpayers, who have legitimate interests therein, hardly enjoy any rights during tax arbitration, despite some exceptions.
Given that, this study has identified an autonomous concept of Rule of Law at the international and EU level, consisting of certain due process guarantees and the principle of equality. Based on these conclusions, the arbitration mechanisms have been analysed in light of the latter concept, thereby addressing the most relevant issues and —eventually— providing a possible solution, namely, a conforming interpretation of the sources of International and EU law regulating tax arbitration.
Recommended Citation
Bizioli, Gianluigi and Bertocchi, Frederico
()
"Tax Arbitration and the Rule of Law: A Challenge for the Coordination of International Taxation,"
Akron Law Review: Vol. 58:
Iss.
1, Article 3.
Available at:
https://ideaexchange.uakron.edu/akronlawreview/vol58/iss1/3