Title: Law and economies of arbitration in global tax policy: Indian practice

Authors: Amit Kumar Kashyap; Pranav Singh Rathore

Addresses: Centre for Corporate Law Studies, Institute of Law, Nirma University, Sarkhej-Gandhinagar Highway, Chandlodia, Gota, Ahmedabad, Gujarat 382481, India ' Allahabad High Court, Lucknow Bench, Uttar Pradesh, India; Institute of Law, Nirma University, US-403, Janhit Kunj, Darbhanga Colony, Prayagraj, 211002, Uttar Pradesh, India

Abstract: Organisation for Economic Cooperation and Development and the G-20 countries introduced an OECD Action Plan aimed at tackling the emerging and challenging issues of base erosion and profit shifting. OECD Action Plan introduced Action Plan 14 which aimed at strengthening the effectiveness and efficiency of the entire MAP process by mandating arbitration if MAP proceedings do not conclude within two years. Considering the specific features of tax disputes, they should be treated differently from the related civil/commercial matters. A unified and global dispute settlement mechanism is very important considering the economics involved in international tax matters but many countries have objected to such unification by relying on aspects such as lack of expertise and sovereignty in tax matters. It is only when the dispute settlement process is strengthened, will any nation, including India, be able to attract the cross-border investment necessary for its overall growth.

Keywords: alternative dispute resolution; sovereignty; base erosion; mutual agreement procedure; MAP.

DOI: 10.1504/IJPL.2020.114120

International Journal of Private Law, 2020 Vol.9 No.4, pp.231 - 245

Received: 25 Sep 2018
Accepted: 11 Jun 2019
Published online: 09 Apr 2021 *

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