A new EU directive came into force on 1 July 2019 to ensure quicker and more effective resolution of tax disputes between Member States. The new system means Member States will now have a legal duty to take conclusive decisions within a certain time period.

The EU hopes that the new system will offer much more tax certainty for businesses and individuals experiencing double taxation issues. Current estimated figures show that 2,000 disputes are pending in the EU, and almost half of these are more than two years old. The new directive applies to complaints submitted from 1 July 2019 and relate to disputes in matters of income or capital earned in a tax year commencing on or after 1 January 2018.