Mandatory Binding Dispute Resolution in the Base Erosion and Profit Shifting (Beps) Two Pillar Solution

Abstract

Binding taxpayer-initiated international dispute resolution has traditionally played a minor role in the international tax system. Despite being long pursued by corporate interests and increasingly accepted by developed countries, international tax arbitration has remained less developed and less respectful of private interests than investor–State arbitration. The binding multilateral dispute settlement endorsed by over 130 countries as part of the Organisation for Economic Co-operation and Development's Two Pillar Solution to issues raised under Action 1 of the Base Erosion and Profit Shifting (BEPS) project marks a change and is noteworthy at a time when some States are reconsidering their consent to the international adjudication of trade and investment disputes. The design of international dispute settlement in the Two Pillar Solution, and the focus on the protection of multinationals from juridical double taxation, displays little appreciation of the experience with dispute settlement in international trade and investment over the past two decades.

Luxury tax perspectives: The evidence of the Republic of Belarus

“…The Organization for Economic Cooperation and Development (OECD)'s Base Erosion and Profit Shifting (BEPS) initiative to сombat tax planning strategies used by multinational companies that take advantage of loopholes and inconsistencies in tax regulations to evade paying taxes, is another direction of the topic. Different aspects of international taxation for firms that intentionally avoid paying taxes by carrying out tax inversions (relocating operations) or by transferring intangible assets to jurisdictions with lower taxes became the object of interest for the researchers (Noonan, Plekhanova, 2023;Mączyński, 2018).…”