ICC Comments on OECD public consultation document on the review of BEPS Action 14: Making Dispute Resolution Mechanisms More Effective

ICC welcomed the opportunity to provide input on the OECD public consultation document on the review of BEPS Action 14: Making Dispute Resolution Mechanisms More Effective, as part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS (the Inclusive Framework).

ICC welcomed the opportunity to provide input on the OECD public consultation document on the review of BEPS Action 14: Making Dispute Resolution Mechanisms More Effective, as part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS (the Inclusive Framework). The review of the BEPS Action 14 Report contains a minimum standard to ensure that jurisdictions resolve their treaty-related disputes through the mutual agreement procedure (MAP) in a timely, effective and efficient manner.

ICC appreciates the time and effort invested by the OECD in developing options to address deficiencies in existing dispute resolution mechanisms. ICC strongly believes that more effective dispute resolution – providing much needed increased legal certainty and predictability for companies – is of utmost importance for enhancing cross-border trade, foreign direct investment and economic growth.

In the context of increasing uncertainty and greater risk of double taxation, improved and effective dispute resolution mechanisms are more pressing than ever. ICC believes that robust dispute resolution mechanisms buttressed with mechanisms to ensure mandatory resolution of disputes and implementation of agreements must remain a fundamental corner stone of the BEPS outcomes and the work of the Inclusive Framework.

While ICC believes that much progress and valuable insight have been gained over the past five years on the implementation of the BEPS Action 14 minimum standard, continued efforts are needed to support the objectives of enhancing cross-border trade, foreign direct investment and economic growth. To this end, the integration of the full suite of alternative dispute resolution tools, such as mediation, would serve to strengthen the objectives of BEPS Action 14. Notwithstanding, dispute prevention, rather than resolution, must remain at the forefront of any dialogue on the reduction of uncertainty and elimination of tax uncertainty.

ICC provided general comments on MAP arbitration, dispute resolution mechanisms in the context of OECD work to address tax challenges of digitalisation and the growing trend of unilateral measures.

Furthermore, ICC provided additional comments on specific consultation questions, as well as on the proposals to strengthen the minimum standard and the proposals to strengthen the MAP Statistics Reporting Framework.

ICC advocates for a consistent global tax system, founded on the premise that stability, certainty and consistency in global tax principles are essential for business and will foster cross-border trade and investment.

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