2023 Articles

SHAPING THE FUTURE OF TRANSNATIONAL TAX DISPUTE SETTLEMENT

Chaisse, Julien; Ji, Xueliang

The underlying objective of the Article is to impart an insightful comprehension of mediation and its efficacy as a viable alternative for resolving transnational tax disputes. The Article posits three main arguments. Firstly, mediation, as a method of conflict resolution, offers an array of benefits, and its utilization has witnessed a surge in popularity, particularly with the recent establishment of the Singapore Mediation Convention. Secondly, in the rapidly evolving global landscape, transnational tax disputes have become increasingly intricate and arduous to adjudicate. The current system of dispute resolution, though possessing certain advantages, ultimately falls short in keeping pace with the evolving demands of the industry. The final contention is that mediation can serve as a potent tool to augment the effectiveness of the Mutually Agreed Procedure (MAP) system. In sum, the Article posits that the use of mediation in the context of tax-related disputes embodies the characteristics of soft law, owing to its imaginative and inventive nature. Additionally, as a non-binding mechanism, mediation confers increased flexibility to contending parties, particularly sovereign entities, to safeguard their respective interests. Consequently, mediation can be a valuable adjunct to the MAP system in facilitating the resolution of tax-related conflicts.