HMRC PAYE Penalties Communication
We welcomed this EU initiative and the prospect of improvements in this area even if they might only be limited to the EU. We noted our disappointment that the recommendations of Action 14 (Dispute Resolution Mechanisms) of the G20/OECD BEPS project had stopped short of endorsing a universal mandatory arbitration provision for all bilateral double tax treaties. We said that we would encourage the EU to channel its resources in supplementing and encouraging the development of the OECD recommendations so that a global approach is taken by all countries, not limited just to the OECD and EU Member States, but including those in the G20 and other countries. This would be our preferred outcome. We are concerned to avoid any EU action that is not consistent and compatible with any OECD developments in this area.
We noted that we support the idea of setting up a permanent arbitration court/tribunal specialising in international tax disputes which would offer a range of services to include mediation and facilitation techniques applying. We also recommended that the whole dispute resolution process allows for more taxpayer engagement and participation in order to improve the efficiency of the process and reduce misunderstandings caused by an incomplete or insufficient understanding of the facts relevant to the issues in dispute.