The author considers some of the systemic and perception issues for tax arbitration involving developing countries that may prevent the broad take-up of arbitration provisions in tax treaties and may damage the reputation of arbitration in this area. He suggests some ways in which developing countries can manage the risks and uncertainties of such arbitration. In particular, he considers the importance of confidence-building and a partnership approach, as well as the role of regional and international organizations in supporting developing countries, if the potential for arbitration as a balanced and objective way of resolving disputes is finally to be unlocked.
Intertax