Alternative Dispute Resolution in the European Union

Abstract
This chapter reviews alternative dispute resolution in the EU. The term ‘alternative dispute resolution’ could refer to means of resolving disputes other than the usual administrative or judicial remedies under domestic law or, considering cross-border tax disputes, other than mutual agreements between national tax administrations. Mutual agreement between competent authorities is a classic way of resolving disputes from a diplomatic point of view, while taking place directly between national tax authorities without the intervention of the diplomatic authorities themselves. More recently, a process of resolving tax disputes through arbitration has emerged, culminating in the adoption by the EU in 2017 of a directive on tax dispute resolution, the main features of which are probably that it imposes arbitration on member states and that the process must lead to the resolution of the dispute. However, the EU does not have a monopoly on thinking and initiatives on ‘tax arbitration’. Alternative dispute resolution may also refer to a way of preventing disputes from arising, through advanced agreements with the tax authorities; this practice has also largely developed in recent last years. The chapter considers how these alternative dispute-resolutions mechanisms have developed, before looking at the technical measures implemented in this area by the EU.