On Arbitration In International Tax Dispute

In the current economic globalization, the economic links among countries are becoming closer and closer, and an increasing number of international tax treaties are signed in order to avoid the international double taxation. However, the results of application vary when using the treaty on a specific affair. This is why the international tax disputes arise, which not only do harms to the transnational taxpayer, but also hinder the free development of countries' economy. Therefore, it is significant to resolve the international tax disputes efficiently.Generally, we use the MAP (Mutual Agreement Procedures) and special national procedure to resolve all of these international tax disputes. As a means of diplomacy, the MAP (Mutual Agreement Procedures) resolves the international tax disputes efficiently in some extent. It fully respects the country's sovereignty, and the scope of the solution to the disputes is widespread. Along with the economic development, the MAP (Mutual Agreement Procedures) is not adaptive to the situation, and then many countries start to search for the new approach which is the arbitration to resolve the international tax disputes. In the modern times, arbitration, composed by international tax arbitration and national tax arbitration, is used to resolve these disputes. International tax arbitration is often used, but America had used the national tax arbitration to resolve the international tax disputes. In fact, national tax arbitration provides beneficial experiences for international tax arbitration, and the Arbitration in International Tax Disputes becomes more and more perfect. All of these remind China to improve the Process for Resolving International Tax Disputes.The whole thesis is divided into four parts, besides the preface and the ending part. The main body is focused on the fourth part.In the preface, the author simply introduces the main purpose to write this thesis and the legislation on Arbitration in some countries.Part One is the Introduction of International Tax Disputes and Arbitration, including three sections. The first section explains the concepts and the relation of the two kinds of International Tax Disputes. The second section is the Introduction of the three principles on resolving International Tax Disputes. The third section is about how to resolve the International Tax Disputes: Firstly, it is the traditional methods to resolve International Tax Disputes, including the MAP (Mutual Agreement Procedures) and special national procedures, because The MAP (Mutual Agreement Procedures) is not adaptive to the situation, many countries start to search for the new approach which is the arbitration to resolve the international tax disputes. Secondly, it is the concepts and the features of the Arbitration in International Tax Disputes.Part Two is about the Legislation of National Tax Arbitration of the U.S.A, The first section is Rules 124 of Practice and Procedure of United States Tax Court, The second section is arbitration rules of the Internal Revenue Services. The third section is commentaries on the two rules: First, it analyses and evaluates the two rules, and then it admits that it does provide beneficial experiences for international tax arbitration.Part Three discusses the Legislation of International Tax Arbitration. The first section is the Legislation of International Tax Arbitration in early times: Firstly, it explains the feature of the arbitration article in the bilateral tax treaties; secondly, it is the feature of EC Arbitration convention; thirdly, it is the commentaries on the two kinds of arbitration articles. The second section is about the new Development of Arbitration in International Tax Disputes. This section explains and evaluates the tax arbitration rules of the IFA, ICC and OECD. The author focuses on the tax arbitration rules of the OECD-Improving The Resolution Of Tax Treaty Disputes Report-adopted by the Committee on Fiscal Affairs on January 30^th, 2007.Part Four discusses how to improve the Process for Resolving international Tax Disputes in China. The first section is about the methods of resolving International Tax Disputes in our country, the national measures are the administrative reconsideration and the law suits, one case called "ABC" is cited in order to explain it. And the international measure is still MAP (Mutual Agreement Procedures). The second section is about the feasibility to use Arbitration in International Tax Disputes in China. The third section is about how to design the arbitration article in bilateral tax treaties for China. There are five suggestions to explain it.In the ending part, the author emphasizes the correct attitude towards Arbitration in International Tax Disputes. Arbitration is not substitute for MAP, but a supplement to MAP. They are combined to resolve International Tax Disputes.