Abstract
This article examines the evolution and increasing acceptance of mandatory binding arbitration in resolving international tax disputes, particularly in the context of the OECD/G20 Two-Pillar Solution (TPS). Traditionally resisted by many states due to concerns about sovereignty, cost, and expertise, international tax arbitration has gained traction among developed countries, driven by corporate lobbying and a growing need to address disputes arising from globalized and digital economies. The TPS introduces a multilateral framework that significantly expands taxpayer-initiated arbitration, particularly for resolving disputes related to "Amount A" taxation under Pillar One. The article contrasts this development with the decline in state consent to arbitration in other international contexts and highlights unresolved issues regarding fairness, transparency, and sovereignty in the design of TPS dispute settlement mechanisms. The shift represents a landmark precedent in international tax law, with far-reaching implications for future global tax governance.
Recommended Citation
Noonan, Chris
(2023)
"Swimming Against the Tide? The Arbitration of International Tax Disputes,"
Indian Journal of International Economic Law: Vol. 14, Article 3.
DOI: 10.55496/SHCX4784
Available at:
https://repository.nls.ac.in/ijiel/vol14/iss1/3
Digital Object Identifier (DOI)
10.55496/SHCX4784