Study On The Legal Issues Of International Tax Arbitration

Since the21st century, as countries increasing openness, economic exchangesbetween countries is becoming closer and closer. In order to adapt to this trend, moreand more countries have established avoidance of double taxation of international taxtreaty, however, in the process of application in tax treaty, countries would inevitablycause conflicts of interest tax. International tax disputes, not only harm the nationaltax benefits to a great extent, but also damage the enthusiasm of the nationaleconomic exchanges, which is not conducive to sustained and healthy development ofinternational economic exchanges. Therefore, how to effectively solve the taxdisputes between each other has become a major issue in the international economicexchanges today.At present, as the traditional way to resolve the international tax disputes, mutualconsultation procedure has been favored by countries and become the variouscountries’ first choice to solve international tax disputes. But in recent years, with theoccurrences of defects in mutual consultation procedure, which has becomeincreasingly apparent, more and more countries began to turn to the arbitration, in thehope of solving the international tax disputes by arbitration. International taxarbitration has experienced a process from the origins to the development. Becausethe international tax arbitration relative to the mutual agreement procedure is stillimmature, therefore there are lots of problems in practice and the need for a perfectprocess. With the constant improvement of international tax arbitration, using thearbitration to solve the international tax disputes has become a wise choice aftermutual consultation procedure, and will play a more and more important role in theprocess of solution of the international tax dispute. To conform to this trend, ourcountry also should consider introducing arbitration to solve the tax disputes ourcountry facing.This paper expounds the international tax dispute and its solution. And on thebasis of that, the author conducts the beneficial exploration from the perspective ofthe origin, the contents, and the concrete problems existing in the practice of theinternational tax arbitration system, and also puts forward some perfectingcountermeasures to solve these problems. Finally, the author makes a detailedanalysis on the existing international lawful methods to solve the international tax disputes in our country and also introduces the concrete arbitration clauses in the taxtreaty. The full essay covers about thirty thousand words, is divided into four parts,and the specific contents are summarized as follows:The introduction part mainly expounds the writing background and motivation ofthis article, the present research situation and main research methods of the thesistopic.The first part is "international tax dispute solution overview". It is divided intothree levels: the first level of international tax dispute carries on the detailedelaboration, including the concept, characteristics and principles of international taxdispute. The second level expounds the mutually agreed procedures of the traditionalinternational tax dispute solutions. The third level introduces the international taxarbitration system, which can be regarded as the beddings for the below internationaltax arbitration system in detail.The second part is "the analysis of problems existing in the system ofinternational tax arbitration ". The thesis mainly discusses the relationship betweenthe international tax arbitration system and the national sovereignty, the legislationdesign existing in the international tax arbitration system.The third part is the "perfect" for international tax arbitration system. It isexplained from brief introduction to OECD Model Tax Treaty and the EU ArbitrationConvention international tax arbitration, and the concrete countermeasures to improvethe system of international tax arbitration.The fourth part "the arbitration thinking" is introduced into the tax treaty of ourcountry. This part firstly introduces the current existing international law method tosolve international tax disputes in China. Secondly it explores further the feasibility inthe tax treaty arbitration in China. At last, the paper puts forward the concreteconstruction to the arbitration clause in the bilateral tax agreement.Epilogue part illustrates the development trend of international tax arbitration,the countermeasures to face the current international tax disputes and the general andproper attitudes to face the international tax arbitration system.