The Double Taxation Dispute Resolution (EU) (Revocation) (EU Exit) Regulations, SI 2020/1383, revoke SI 2020/51 which provided for a mechanism to resolve tax disputes between the UK and EU member states. As the UK is no longer a member state of the EU, it will cease to be within scope of the Directive following the end of the Brexit transition period. The regulations come into force on IP completion day. HMRC’s policy paper The Double Taxation Dispute Resolution (EU) (Revocation) (EU Exit) Regulations 2020 explains the change.
In a client briefing, Simmons & Simmons noted that ‘requests may still be filed before 1 January 2021, however, and will still qualify to be handled under the EU Arbitration Convention or the Arbitration Directive. As stated, the significant benefit in this respect is that if a case is filed under these procedures, then there is access to mandatory arbitration if the competent authorities are unable to reach an agreement within a two-year period.
‘It may still be possible to request arbitration under the UK’s domestic bilateral treaties after 1 January 2021; however, not all of these treaties provide for mandatory and binding arbitration.’
The Double Taxation Dispute Resolution (EU) (Revocation) (EU Exit) Regulations, SI 2020/1383, revoke SI 2020/51 which provided for a mechanism to resolve tax disputes between the UK and EU member states. As the UK is no longer a member state of the EU, it will cease to be within scope of the Directive following the end of the Brexit transition period. The regulations come into force on IP completion day. HMRC’s policy paper The Double Taxation Dispute Resolution (EU) (Revocation) (EU Exit) Regulations 2020 explains the change.
In a client briefing, Simmons & Simmons noted that ‘requests may still be filed before 1 January 2021, however, and will still qualify to be handled under the EU Arbitration Convention or the Arbitration Directive. As stated, the significant benefit in this respect is that if a case is filed under these procedures, then there is access to mandatory arbitration if the competent authorities are unable to reach an agreement within a two-year period.
‘It may still be possible to request arbitration under the UK’s domestic bilateral treaties after 1 January 2021; however, not all of these treaties provide for mandatory and binding arbitration.’
