The EU Arbitration Convention - Effective As Of 1 January 1995

This is contibution number two by KPMG Meijburg & Co regarding KPMG comments on the anticipated positive effects of the EU Arbitration Convention which became effective on January 1, 1995.

This article is most likely to be relevant for multi-nationals enterprises (ie with cross border activities) within Europe with production and/or distribution activities.

Although EU Treaty on the Elimination of Double Taxation in Connection with the Adjustment of Profits of Associated Enterprises" ("the Arbitration Convention") was originally signed on 23 July 1990, it took until 28 October 1994 for all necessary ratification procedures to be completed. As a result the Convention will enter into force on 1 January 1995. The Convention is binding to the signatories of the Convention which are the current twelve E.U. Member States. It therefore does not automatically apply to new Member States. The Convention contains procedural rules under which double taxation of business profits (in