Comments on the OECD Proposal for Secret and Mandatory Arbitration of International Tax Disputes

The OECD has proposed amendments to its Model Tax Convention and Commentary that would establish a system for the mandatory arbitration of tax disputes between two treaty countries when the tax officials of those countries have been unable to resolve those disputes within a two-year period.[1] The proposal is undoubtedly well-meaning and does address a small but significant problem – the “rare cases” (OECD characterization)[2] of potential double taxation that…