OECD explores alternative dispute resolution options
The Organisation for Economic Cooperation and Development (OECD) is pursuing a multinational agreement to overhaul global taxation, it now looks into alternatives for binding dispute resolution mechanisms. As stated In the OECD Secretary General Tax Report to G20 finance ministers and central bank governors, binding dispute prevention and resolution is an essential part of any solution for the work on addressing the tax challenges arising from digitalisation. This is to avoid a situation where an MNE group (having tax residence in several jurisdictions) could be subject to multilateral audit or separate dispute resolution involving potentially in excess of 100 jurisdictions. The OECD also seeks to resolve concerns of states with regards to yielding their sovereignty under the new taxation regime.