Study On The Arbitration Mechanism Of International Tax Disputes Under The Background Of BEPS

In response to the problem that under the backdrop of economic globalization,international tax disputes have been on the rise,and the traditional tax dispute resolution mechanism cannot be used effectively,Action 14 of the Base Erosion and Profit Shifting Action Plan proposed to formulate a mandatory binding arbitration mechanism to strengthen the effectiveness and efficiency of the Mutual Agreement Procedure.For this purpose,the Sub-Group on Arbitration in which 27 countries participated as members completed the formulation of the mechanism,and as apart of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting(the "Convention"),for Parties of this Convention to choose to apply.This article summarizes the shortcomings of traditional tax dispute resolution mechanisms,describes the historical evolution and content of the tax dispute arbitration mechanism in the Convention,and generalizes the characteristics of the mechanism.As one of the latest developments of the OECD's recent mechanism of international tax disputes,this article argues that,compared with the traditional tax dispute arbitration mechanism in the tax treaty model,it has more explicit legal certainty,stronger practicality,and can quickly modify the traditional tax arbitration mechanisms.On the other hand,the mechanism in the Convention also has 6 aspects of problems such as the ineffectiveness of solving tax disputes,the possibility that the taxpayer's rights and interests could not be timely assisted because of delayed initiation of the arbitration procedure,failure to protect taxpayers' full participation in arbitral proceedings,and low transparency of the mechanism caused by the non-disclosed decisions.Drawing on the Council Directive on Double Taxation Dispute Resolution Mechanisms in the European Union,as proposed by the European Commission,this article proposes suggestions for improving the tax arbitration mechanism in the Convention from 5 aspects,including further perfecting the unclear procedural provisions of the tax mechanism,improving the protection of the rights of taxpayers,and adding an alternative tax dispute resolution mechanism and public final decision,etc.To better respond to the tax arbitration mechanism in the Convention,this article,from the macroscopic aspects,discusses China's due attitude to the tax disputes arbitration mechanism in the Convention,and from the microscopic aspects,analyzes the issues that need to be taken into consideration when our country chooses to apply the mechanism in the Covered Tax Agreement,including making reservations about the scope of the case that can be referred to arbitration,requiring MAP deadline for 3 years to qualify for arbitration,refining the undefined procedural provisions of the tax arbitration mechanism in the Convention,etc.It is expected that under the precondition of safeguarding China's tax sovereignty,it will promote the development and improvement of the tax dispute settlement mechanism,increase the efficiency of solving tax disputes,ensure the rights and interests of taxpayers at domestic and foreign,and promote the development of international investment and trade activities.