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DOUBLE TAXATION – Dispute resolution mechanism between EU member states
This amendment provides a mechanism to resolve disputes between Member States when those disputes arise from the interpretation and application of agreements and conventions that provide for the elimination of double taxation of income or capital, in respect of the same taxable income or capital (hereafter ‘question in dipsute’), when this double taxation gives rise to either:
- an additional tax charge;
- an increase in tax liabilities; or
- the cancellation or reduction of losses that could be used to offset taxable profits
- The objection shall be submitted, either in English or in Greek, within 3 years from the receipt of the first notification of the action resulting in, or that will result in, the question in dispute, regardless of whether the affected person has recourse to the remedies available under the national law of any of the Member States concerned;
- The affected person shall simultaneously submit the objection, with the same information, to each competent authority, and shall indicate in the objection which other Member States are concerned.
- The Tax Commissioner acknowledge receipt and to this end inform both the affected person and the relevant competed authorities within 2 months from the receipt of the objection.
- The Tax Commissioner shall take a decision on the acceptance or rejection of the objection within 6 months of the receipt thereof or within 6 months of the receipt of the particular information may requested, whichever is later.
- Within the period of 6 months from the receipt of the objection, or within 6 months of the receipt of the information referred to in paragraph 4 above, whichever is later, the Tax Commissioner may decide to resolve the question in dispute on a unilateral basis, without involving the other competent authorities of the Member States concerned.
- In case that the Tax Commissioner will not meet the subject deadline (as mentioned in paragraphs 4 and 5 above), in relation to the acceptance or rejection of the objection, then the objection shall be considered as accepted by the Tax Commissioner.