To Arbitrate Or Not To Arbitrate? The Mexican Perspective

If representatives wisely choose to apply Part VI of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLC), it will definitely be considered as a winning bet on the future of foreign investments in Mexico. If instead, the decision goes the other way, we unenthusiastically point out that Mexico would be missing out on a historic opportunity to strengthen the rule of law and to guarantee legal certainty in the resolution of conflicts arising out of double taxations.

International arbitration in tax matters

International arbitration in tax matters is regarded as an integral part of the already renowned mutual agreement procedures (MAPs) included in double taxation model treaties, such as (i) the OECD Model Convention (OECD Model), or (ii) the United Nations Model Convention (UN Model).