The OECD has released documents related to information on the United Kingdom’s arbitration position under Part VI of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
Part VI of the MLI enables jurisdictions adopting it to implement mandatory binding arbitration for resolving tax treaty disputes.
Arbitration profiles have been created to offer taxpayers further insights into the application of Part VI of the MLI for each participating jurisdiction. These profiles also enable jurisdictions to publicly clarify their stance on MLI Arbitration.
The “final offer” arbitration process will apply as the default type of arbitration process to the United Kingdom’s Covered Tax Agreements except to the extent that competent authorities mutually agree on different rules or except where other Contracting Jurisdictions have reserved their right to adopt the “independent opinion” approach as the default type of arbitration process pursuant to Article 23(2) of the MLI.
According to the updated UK profile, the UK’s competent authority has mutually agreed with the competent authorities of 20 listed jurisdictions on the mode of application of the provisions in Part VI of the MLI.
