Dispute resolution procedures in the multilateral instrument

The multilateral instrument (MLI) implements BEPS recommendations in several areas, including dispute resolution. Revised mutual agreement procedure (MAP) and transfer pricing corresponding adjustments wording will be included in treaties. Countries can choose to adopt mandatory binding arbitration (MBA). A recent ICC survey showed corporates were concerned about the lack of formal taxpayer involvement in MAP and MBA and the time taken to resolve disputes. Disappointingly, the MLI gives taxpayers no significant involvement in MAP or MBA. Although it looks as if the UK is going to sign up for the ‘full deal’, there is still scope for other states to drag their feet.