Author: Micah Burch, University of Sydney

Much was made (in tax treaty circles, at least) three years ago when the OECD included in its model tax treaty a provision requiring arbitration.

The controversial provision (Article 25(5) of the OECD Model Tax Convention on Income and on Capital (2003)) requires states to arbitrate tax disputes arising under the treaty if they remain unresolved after two years of negotiation between the competent authorities. While arbitration is a generally accepted facet of international commercial dispute resolution worldwide, dispute resolution under bilateral tax treaties is relatively undeveloped. Read more…