Transfer pricing: EU proposes Arbitration Code of Conduct

The European Commission has proposed a Code of Conduct for all procedures under the Arbitration Convention with the object of avoiding double taxation on intra-community trade.

The EU Joint Transfer Pricing Forum has finished the first phase of its task with the presentation to the Commission of its suggestion for a Code of Conduct to be followed by member states when applying the Arbitration Convention. Its suggestion, which has now been endorsed by the Commission, is for the member states to adopt the Code during a Council meeting once the European Parliament has given its views. This would avoid the inevitable delays associated with finalising and the ratifying a legal act. The Forum has now turned to the next part of its project, the review of the documentation requirements in the various member states and of the scope for harmonisation.