On 2 July 2019 the UK government published for consultation draft Regulations to implement EU Council Directive 2017/1852 on tax dispute resolution mechanisms. Under the draft Regulations a stronger system of dispute resolution would be introduced for disputes with EU member states and UK taxpayers’ rights would be strengthened. Taxpayers would be able to bring complaints about double taxation disputes and put forward requests with the aim of resolving the disputes.
Taxpayers will be able to submit complaints relating to questions in dispute between the Commissioners and at least one other competent authority, relating to double taxation arrangements. The draft legislation includes provisions on how the taxpayer may submit a complaint and requires acknowledgement of receipt of the complaint by the Commissioners. The Commissioners may request further information from the taxpayer if required. The Commissioners must then decide whether to accept or reject the complaint. The draft legislation provides that a decision to accept the complaint is without prejudice to the eventual outcome of the issue in dispute. If the Commissioners decide to reject the complaint the taxpayer may in some cases dispute that decision in the domestic courts and in an Advisory Commission.
The Commissioners may decide to resolve the question in dispute on a unilateral basis or by mutual agreement with other competent authorities. If no mutual agreement is reached the taxpayer may request that an Advisory Commission is set up to give an opinion on resolving the issue.
The Commissioners and each of the other competent authorities concerned may set up an Alternative Dispute Resolution Commission, instead of an Advisory Commission. The draft legislation sets out the procedure for reaching a decision on the final resolution of the disputed issue following an opinion from an Advisory Commission or from the Alternative Dispute Resolution Commission.
The draft legislation covers the composition, procedure, information sharing and costs connected to an Advisory Commission; and the arrangements and procedures for an Alternative Dispute Resolution Commission.
Views from interested parties are invited by 27 August 2019.