The Arbitration of Transfer Prices in Europe: The EU Arbitration Convention in Practice
15 January 2006
By Dr. Alexander Voegele with Florence Forster of University Paris I, Sorbonne
Transfer price adjustments between related companies by European tax authorities are becoming increasingly common. Though adjustments in one country should be immediately accepted by the competent authorities in the other involved country, the latter typically does not accept such adjustments without further actions, often resulting in double taxation.
In this article from Practical European Tax Strategies, NERA Special Consultant Dr. Alexander Voegele and Florence Forster of University Paris I, Sorbonne argue that arbitration can be a solution to avoiding double taxation and that the EU Arbitration Convention is perfectly adapted for resolving disputes where double taxation occurs between companies of different EU Member States. The article provides a detailed analysis of the EU Arbitration Convention, addressing its members, procedural requirements, legal framework, and strengths and weaknesses.
