Ireland’s tax dispute resolution mechanism reviewed by OECD

Sep 03, 2018

The OECD published the fourth round of peer review reports which assess the efforts of various countries, including Ireland, to implement Action 14 on tax dispute resolution as agreed to under the OECD/G20 BEPS Project.

The reports of Australia, Ireland, Israel, Japan, Malta, Mexico, New Zealand and Portugal contain over 130 targeted recommendations that will be followed up in stage 2 of the peer review process.

In order to be fully compliant with all four key areas of an effective dispute resolution mechanism under Action 14 Minimum Standard, Ireland needs to amend and update a certain number of its tax treaties.  Ireland has signed the Multilateral Instrument through which a number of its treaties will be modified to fulfil the requirements under Action 14 Minimum Standard.  Where treaties are not automatically modified under the Multilateral Instrument, Ireland has told the OECD that it intends to update all of its tax treaties to be compliant with the requirements under Action 14 Minimum Standard via bilateral negotiations and has already contacted most of its treaty partners to initiate such negotiations.  Ireland has also opted for mandatory and binding arbitration provision in tax treaties.  For more details see the OECD’s press release.