The Bill that will transpose the directive regulating the resolution of disputes arising in the application of international agreements eliminating double taxation of income and capital concluded between Member States passed the second reading in the Riigikogu today.
Compared to the existing options for resolving cross-border tax disputes on the basis of agreements for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, and the Convention on the elimination of double taxation in connection with the adjustments of profits of associated enterprises, the directive provides for more detailed and effective procedural rules, provides a more certain time frame for resolving disputes, and strengthens the rights of the taxpayers in the process. A final decision to resolve a tax dispute is binding on tax authorities and it is enforced if the taxpayer accepts it.
The amendments to the Courts Act will enable judges to participate as independent recognised persons in the work of an advisory commission or an alternative dispute resolution commission in the resolution of such disputes. The publishing of the personal identification codes of candidates for lay judges will also be regulated.
According to the Bill, it will be possible for the Tax and Customs Board to disclose data subject to tax secrecy to the implementers of national support programmes so that they can check compliance with the conditions for granting supports and with targeted use of the support, as well as to the Environment Agency so that it can check compliance with specific requirements of the Liquid Fuel Act and the Atmospheric Air Protection Act.
The explanatory memorandum to the Bill on Amendments to the Taxation Act, the Courts Act and the Liquid Fuel Act (29 SE), initiated by the Government, states that, in order to ensure a fairer tax environment, an effective dispute resolution system is needed that would make it possible to eliminate double taxation.
Verbatim record of the sitting (in Estonian) http://stenogrammid.riigikogu.ee/en/201910171000.
Video recordings of the sittings of the Riigikogu can be viewed at https://www.youtube.com/riigikogu (Please note that the recording will be uploaded with a delay.)
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