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Following the UK's exit from the EU, no new claims can be accepted under either the EU Arbitration Directive or the EU Arbitration Convention (EUAC) from 1 January 2021¹. The legislation implementing the EU Arbitration Directive into UK law (SI 2020/51) was revoked by SI 2020/1383. Therefore the commentary below is only relevant for on-going claims.

While the Mutual Agreement Procedure (B4.183) of double tax treaties endeavours to eliminate double taxation, the EU Arbitration Convention² (EUAC) establishes a procedure to resolve disputes where double taxation occurs between enterprises of different Member States as a result of an upward adjustment of profits of an enterprise of one Member State.

The scope of the EUAC is limited to transfer pricing. The wording is similar to that in many double taxation agreements based on the OECD model. In particular, EUAC:

1. Ìý

   •ÌýÌýÌýÌý identifies which taxes are subject to the procedure

2. Ìý

   •ÌýÌýÌýÌý identifies who can claim relief under the EUAC

3. Ìý

   •ÌýÌýÌýÌý establishes that taxable income