Arbitration of Unresolved Issues in Mutual Agreement Cases : The New Paragraph 5, Art. 25 OECD Model Convention, a Multi-Tiered Dispute Resolution Clause

The paper deals with arbitration of unresolved issues in mutual agreement cases as regulated by the new paragraph 5, Article 25 of the OECD Model Convention to avoid double taxation in respect to income taxes. After general introductory remarks on the arbitration method in international tax matters, the paper describes the evolution of international tax arbitration. The central part of the paper is devoted to the analysis of the procedure of the tax arbitration established by new Article 25(5) of the OECD Model Convention, which has the features of a a multi-tiered dispute resolution clause. The paper concludes with a discussion on the effectiveness of the tax treaty arbitration of Article 25(5) OECD Model Convention