ELKB Tax – Solving tax disputes for the avoidance of double taxation, September 2019

The Government Ordinance no. 19/2019 amending and supplementing the Law no. 207/2015 on the Fiscal Procedure Code (the “Government Ordinance 19/2019“) brings a new mechanism for resolving tax disputes for the avoidance of double taxation.

This new mechanism is the result of transposing the Council Directive (EU) 2017/1852 regarding the mechanisms for settlement of tax disputes in the European Union (the “Directive 2017/1852“).

The main scope of Directive 2017/1852 (and as a result, of Government Ordinance 19/2019) is to establish a unitary mechanism on how to resolve disputes between Member States when those disputes arise from the interpretation and application of agreements and conventions that provide for the elimination of double taxation of income and, where applicable, capital.. Below you may find certain highlights on the same.