Even in the event of an arbitration request, the EU review found that there could be many shortcomings in the system, including delays or lack of setting up the advisory committee and the lack of agreement on the appointment of the chairman of the advisory committee that delays or prevents the procedure. Overall, it is clear that the MLI extends taxpayers` access to three years, both in terms of extending the period during which taxpayers must initiate a POB period, provides an effective two-year period for the relevant authorities to resolve a case (after that date, it may be subject to arbitration). The MLI has led to a greater homogeneity of approach on key issues such as arbitration and, above all, the adoption of a single map article for covered tax treaties. In addition, the high costs imposed on an employee may render an arbitration agreement unenforceable, although there is no fixed dollar amount deemed too high to compel an employee to pay. It is the decision that may be unreasonable for a particular worker is then to determine what might render the agreement unenforceable. As a general rule, to avoid this potential problem, forced agreements do not require a worker to pay more than would normally result from public court proceedings. In view of the POP resolution, Part VI of the MLI (Articles 18-26) refers to the mandatory arbitration procedure for MAP files. At the time of the final report, several legal systems committed to implementing mandatory POPs arbitration procedures in their bilateral tax treaties. This section is practically optional.
If a dispute arises as a result of or related to this treaty, and the parties do not resolve the dispute through negotiations, any party to the dispute may immediately submit a conciliation notification to the other party. This communication must be made in writing and indicate the contentious issues. The process of mutual unification (POP) remains the most widely used way and the best way to eliminate double taxation. The effective use of PPIs by different instruments has been of interest to the OECD and the EU for more than 20 years. According to bePS, the number of double taxes is increasing and the number of POPs continues to increase. There is a growing emphasis on ensuring better dispute resolution techniques to more effectively eliminate double taxation. This article describes some of the features of the instruments currently available.