The Mutual Agreement Procedure as a Means of Addressing Tax Treaty Override

This study examines the feasibility of utilizing the Mutual Agreement Procedure in cases of tax treaty override.
The analysis begins by defining the concept of tax treaty override, distinguishing it from related notions such as ambulatory interpretation and treaty dodging.
The study further establishes the boundaries of its application by identifying the positive and negative criteria for cases that may fall under this concept, providing clearer guidance on the situations it encompasses.
Additionally, the research addresses the implications and response mechanisms at both the international level and within domestic legal systems, with a particular focus on the Portuguese legal framework.
The core of the study explores the consequences of a State enforcing domestic legislation that contradicts an international treaty to which it is a party, considering both the impact on inter-state relations and on affected taxpayers.
After treaty override analysis, the article investigates the Mutual Agreement Procedure, outlining applicable cases and procedural requirements, and examines the role of arbitration in resolving tax disputes, highlighting its advantages and limitations.

Keywords: Hierarchy of Sources; Breach of Treaties; Tax Treaty Override; Treaty Dodging;
Mutual Agreement Procedure; BEPS Action 14