United Nations handbook on dispute avoidance and resolution

A main preoccupation of those responsible for designing tax systems is minimizing disputes concerning the interpretation and application of income tax laws and ensuring that any disputes are resolved fairly and effectively. Particularly for tax administrations of developing countries, fair and effective resolution of tax disputes serves to balance the dual country needs to raise domestic revenues and to attract and keep foreign investment. Achieving the right balance contributes to the strengthening of domestic resource mobilization. The report provides guidance on the various mechanisms to avoid and, if needed, resolve tax disputes that may arise under the provisions of domestic income tax laws and tax treatise.