An outline of the CCCTB (Common Consolidated Corporate Tax ...

Inspections and investigations would also result from a common agreement
between the principal tax authority and the other competent tax authorities. It is
important to note that the principal tax authority should not be vested with powers
enabling it to give instructions to other tax authorities. Moreover, local tax
authorities should always remain responsible for the practical conduct of inspection
and audit procedures in their own territories. This ought to reduce the risk of
partiality.
A limitation period of three years from the deadline for submission of the
consolidated tax return should be set. It could be extended if a dispute were
examined by an arbitration panel or if an anomaly were discovered. In the latter
case, a period of six years would apply, or even twelve years if the anomaly were
liable to give rise to criminal proceedings.
Disputes between tax authorities
An arbitration panel would be responsible for hearing and determining all kinds of
disputes between tax administrations. It would comprise three to five experts,
selected from a list drawn up by the Member States, and would have six months to
deliver its decision. In principle, its decisions should be taken unanimously. If a
unanimous decision is inconceivable, a majority decision should suffice. The
panel’s decision should bind the parties.
Appeals by taxpayers
Two kinds of redress would be open to taxpayers, namely a right of administrative
appeal and a right of judicial appeal.
Administrative appeals
Taxpayers should have 60 days from the date of receipt of a decision or notice to
lodge an appeal. This appeal would not have suspensive effect.
The body that would consider the appeal in the first instance should comprise one
representative of the appeals body of each Member State in which the tax
authorities concerned were located. If any of these states did not possess an
appeals body, a representative would be designated.
This body would have the power to confirm or amend the decision or notice or
annul it and refer the matter back to the principal tax authority. Such decisions
would be taken by majority. The time limit available to the body to deliver its ruling
should be six months from the date on which the appeal was lodged. The absence
of a response within that time limit would be tantamount to confirmation of the
original decision or notice.
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