Research On The Status Of Taxpayers Under International Tax Dispute Resolution

As the intrinsic relationship between transnational taxpayers and international tax disputes, resolving international tax disputes should not only regard the national tax sovereignty and tax benefits, but also take into account the protection of the rights of taxpayers. At present, resolution for international tax disputes including the Mutual Agreement Procedure (MAP) and International Tax Arbitration. Under the Mutual Agreement Procedure, due to states stick to the principle of tax sovereignty, taxpayers are excluded from the process. Thus, their interests are not guaranteed. As the recent developed mechanism, International Tax Arbitration procedure make up some deficiencies of Mutual Agreement Procedure. Regulations on bilateral tax treaties and multilateral tax conventions also give various status to taxpayers. However, as a supplementary dispute resolution (SDR), International Tax Arbitration can not balance the conflict between the principle of respecting national tax sovereignty and the principle of protecting taxpayers'rights. In theory, constructing a procedure which is operated by taxpayers and states is the best mechanism to resolve the tax disputes, which is according with the principle of equity and efficiency. ICSID arbitration in the field of international investment can be used for reference. Surely, establishment of new mechanism need to satisfy ideal basis and objective basis both. Yet the objective conditions need to mature, the actual International Tax Arbitration and the status of taxpayers should be amended. "third party in arbitration" is a reasonable position for the taxpayers, and will be acceptable for states and taxpayers. Finally, China should introduce arbitration clause in bilateral tax treaties, and change the idea of protecting the rights of taxpayers in tax disputes.