Towards More Effective and Inclusive Globalisation Strategies in International Tax: The Use of Peer Reviews in Evaluating Tax Treaty Dispute Resolution Mechanisms

The Organisation for Economic Cooperation and Development (OECD)/G20 Base Erosion and Profit Shifting Project, initiated in 2013, delivered 15 final Actions in 2015. These actions represent countermeasures to serious risks to tax revenues, tax sovereignty and tax fairness because of globalisation and constitute the most far-reaching and fundamental changes to international tax rules in over a century. They exemplify globalisation in transition, as they reflect the realisation that international tax solutions now require dialogue on a global basis. To this end, an Inclusive Framework was established in 2016, to ensure that both developed and developing countries could participate on an equal and collaborative basis in reviewing and monitoring the new tax rules, including the implementation of new minimum standards on tax treaty dispute resolution. This chapter will examine and evaluate the innovative new peer review process in relation to Action 14, which seeks to improve tax treaty related disputes between jurisdictions. It will critically analyse the outcomes of this process in terms of its efficiency and effectiveness in improving international dispute resolution mechanisms on a global basis.