Business Daily from THE HINDU group of publications
Friday, Sep 28, 2007
ePaper
Business Daily from THE HINDU group of publications Friday, Sep 28, 2007 ePaper |
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Industry & Economy
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Taxation ‘OECD pushing for compulsory arbitration in tax treaties’ K.R. Srivats New Delhi, Sept. 27 The Organisation for Economic Cooperation and Development (OECD) is pressing for a provision of compulsory arbitration in the double taxation avoidance agreements (DTAAs) entered into by various countries, a senior Finance Ministry official has said. A provision of compulsory arbitration would prove useful especially in situations where the competent authorities are unable to resolve the dispute through the mutual agreement process (MAP), which is one of the dispute resolution mechanisms available to an aggrieved taxpayer. Under MAP, a taxpayer who feels that he has been subjected to double tax because of the action of tax authorities of another country can approach the competent authority in the country of his residence and seek relief through MAP. All the DTAAs entered into by India have a provision for MAP even though the presence of such a facility is not that well known among industry. About MAP“OECD is pushing for a provision of compulsory arbitration. This is because MAP takes time and there are instances where the competent authorities do not resolve disputes,” Mr D.P. Sengupta, Director Income-Tax (International Tax) in the Finance Ministry, said at an international tax conference here. He, however, maintained that MAP has been successful as an alternative disputes resolution mechanism for Indian companies. The PricewaterhouseCoopers Executive Director, Mr Sanjiv K. Chaudhary, later told Business Line that provision of compulsory arbitration in DTAAs would help aggrieved taxpayers in cases where the competent authorities are not able to resolve disputes through the MAP. More Stories on : Taxation
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