ICC response to UN Intergovernmental Committee Workstream III – July 2025

The International Chamber of Commerce (ICC) would like to provide input on the UN Intergovernmental Negotiating Committee’s Workstream III Draft Issues Note – Early Protocol on the Prevention and Resolution of Tax Disputes, emphasizing the need for a consistent, stable, and certain global tax system to foster trade and investment.

The Draft Issues Note rightly underscores the challenges of litigating tax disputes, including lengthy timelines and high costs, particularly in cross-border cases where double taxation risks may persist. The business community welcomes the Note’s emphasis on enhancing domestic resource mobilization through increased cross-border trade and investment, supported by effective tax dispute prevention and resolution mechanisms.

Prevention is key. Legal certainty provided in advance—through clear rules, early engagement, and cooperative approaches—can avoid costly disputes. Mechanisms such as cooperative compliance are gaining traction, particularly in developing countries, and should be further explored. Alternative dispute resolution (ADR) tools like arbitration and mediation are also welcomed by the private sector. These mechanisms offer quicker, more cost-effective solutions than traditional litigation, enhancing certainty and supporting cross-border investment. Binding arbitration, in particular, ensures enforceable outcomes, while mediation encourages open dialogue and mutual understanding.

Taxpayers have a crucial role to play. As holders of key information, their active involvement— especially in clarifying facts and business models—can prevent disputes and aid in timely resolution.

Their collaboration is essential in any effective dispute resolution framework. Clarity is also needed on how new mechanisms interact with existing ones. ICC remains committed to supporting the process and emphasizes the value of taxpayer input in shaping practical and effective solutions.