European Economic and Social Committee supports Double Taxation Dispute Resolution proposal

The European Economic and Social Committee (EESC) unanimously supported the European Commission proposal for Council Directive to improve double taxation dispute resolution mechanisms in the EU. The Committee agreed with the European Commission that double taxation is one of the biggest tax obstacles to the EU Single Market. According to the EESC, the approval of this opinion sends a strong signal to stakeholders and governments to act, considering the urgent need for mechanisms ensuring that cases of double taxation are resolved more quickly and more decisively when they arise between Member States. The EESC also supported the European Commission initiative to extend its monitoring of countries’ performance in all cases of double taxation disputes in cross-border situations on a yearly basis, in order to assess whether the objectives of the directive are met.

According to the proposal, where Member States do not automatically start the arbitration procedure, the taxpayer can ask a national court to take the necessary steps for setting up an arbitration committee to deliver a final, binding decision on the case within a fixed timeframe. The EESC opinion was adopted at the 523rd plenary session, held on 22 and 23 February 2017.

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