BEPS and the future for cross-border dispute resolution

Almost an afterthought in the OECD’s action plan for preventing base erosion and profit shifting (BEPS) is Action 14 – making dispute resolution mechanisms more effective. Yet with countries being urged to make radical changes to their tax laws which will on the OECD’s estimate result in the collection of an extra $240bn a year in tax the instances of double taxation and the scope for tax disputes is likely to increase substantially. Even in the unlikely event of every country fully adopting all the BEPS recommendations disputes about interpretation will arise not least because not all countries will implement the proposals in exactly the same way. To add fuel to the fire country by country...