Study On Arbitration As An International Tax Disputes Resolution

With the deepening of economic globalization and the increasing economicexchanges, more and more countries concluded tax treatise to avoid double taxation.Due to different domestic systems and certain limitations of tax treaties, internationaltax disputes are inevitable. International tax disputes will not only harm the interestsof taxpayers and countries, but also seriously affect the transnational economicactivities. Therefore, the solution of international tax disputes is particularlyimportant.Mutual Agreement Procedure is the traditional method of resolving internationaltax disputes, which is also the only method that is regulated in China’s foreign taxtreaties. However, as the shortcomings of Mutual Agreement Procedure are constantlyexposed to the public, many countries started to look for new ways of disputesettlement. Under the vigorous promotion of International Chamber of Commerce,International Fiscal Association and Organization for Economic Co-operation andDevelopment, the international arbitration procedure steps onto the international stage,gradually becoming a new method of dispute settlement.This thesis first expounds the historical development and characteristics ofinternational arbitration procedure, and then analyzes the current rules of someinternational organizations. Considering the domestic situation of our country, thethesis discusses the feasibility and necessity of introducing the arbitration procedure in China’s foreign tax treaties. Finally, the thesis offers a basic idea of the arbitrationclause in China’s foreign tax treaties and puts forward some feasible suggestions. Thewhole thesis is divided into six parts, from the preface to the conclusion.In the preface, the thesis introduces the main background and significance of thetopic, and literature review of former studies.Chapter one is a general introduction of methods of international tax disputesresolution. This chapter mainly explains the definition of international tax disputes,the basic principles of resolving international tax disputes, and briefly makes anintroduction of Mutual Agreement Procedure and international arbitration procedure.Chapter two is mainly about the theory of international tax arbitration. Thischapter mainly traces the historical development of the procedure, describes itsproperties and characteristics, and makes a brief comparison with the domestic andother international arbitration mechanism.Chapter three is the current regulations of international tax arbitration procedure.This chapter mainly studies and analyzes different arbitration rules of internationalorganizations including ICC, IFA, EU and OECD.Chapter four is about the perfection of China’s current international tax disputeresolution. This chapter mainly introduces China’s current international tax disputeresolution, and discusses the feasibility and necessity of introducing international taxarbitration in China. At last, this chapter makes some suggestions on introducing theinternational tax arbitration procedure.The conclusion reaffirms the necessity and proper attitude of China towardsintroducing international tax arbitration.