Study On The International Tax Dispute Resolution Of Arbitration

As a common practice, counties solve international tax dispute by introducingMutual Agreement Procedure ("MAP") in tax treaties. However, the drawbacks ofMAP make as well as the increasingly complicated international tax issues make itinsufficient in the resolution of international tax dispute. As a result, some countriesand international organizations have been trying to introduce the tax arbitration intothe tax dispute. In the early stage, the tax arbitration in the tax treaty signed by theUnited States is voluntary, however, from2006on, the United States introducedcompulsory tax arbitration in the form of Memo or amendment of tax treaty withGermany, Belgium, France and Canada. The transfer from voluntary tax arbitration tocompulsory tax arbitration represents the development trend of tax arbitration. Asearly as1990, the EU adopted tax arbitration in Convention on the Elimination ofDouble Taxation in Connection with the Adjustment of Profits of AssociatedEnterprises, which made it the first multi-country tax convention. Tax arbitration wasofficially included in the Model Tax Convention on Income and on Capital by OECDin2008. Based on the fact that most of tax treaties, the number of which is more than2000, entered into between countries around the world are based on OECD taxconvention, the adoption of tax arbitration surely will give impetus to thedevelopment of tax arbitration. The essay firstly introduces the definition, characteristics of international taxarbitration and the main contents by taking the legislation and practice of taxarbitration in the United States，EU and the OECD, based on which, the essay answershow to improve international tax dispute resolution mechanism in our country. Theessay consists of six parts, namely, fours chapters as well as preface and ending partsas follows:In the preface, the author makes a brief introduction to the purpose and aim ofthe essay.The first chapter is the introduction of international tax arbitration. This chapterbegins with the definition, background and main contents of the international taxarbitration and then analyzes the relations between the international tax arbitrationand MAP.The second chapter is the legislation and practice of international tax arbitrations.This chapter mainly makes the legislations and practice of international tax arbitrationin America and EU as example for the study purpose.The third chapter is the latest development of international tax arbitrationof-taking OECD model tax convention as an example. This chapter mainly studyingthe pushing effects of OECD towards international tax arbitration by studying Article25of OECD model tax convention.The fourth chapter is about the thoughts-provoking of international taxarbitration in our country. This chapter proposes the preparation of introduction ofinternational tax arbitration in our country by analyzing the current international taxdispute resolution mechanism and its problems and the necessity and possibility ofintroducing the international tax arbitration.