Tax-Related Disputes and Investment Treaty Protection - Recent Practical and Policy Developments

Tax-Related Disputes and Investment Treaty Protection - Recent Practical and Policy Developments

• Thursday, March 27, 2025 5:30 PM - 7:30 PM EDT

Covington is delighted to host the USCIB for a session on Tax-Related Disputes and Investment Treaty Protection - Recent Practical and Policy Developments.

In recent years and following several high-profile cases (Vodafone, Cairn and others) the role of investment treaty protection in cross-border tax-related disputes has grown in prominence. Arbitral tribunals have, however, clarified the respective (different) subject matters of International Investment Agreements (IIAs) and double taxation conventions (“DTCs”) from the perspective of the Vienna Convention on the Law of Treaties. At the investment treaty policy level, states are paying increasing attention to taxation while pursuing two main objectives. First, many states are ensuring that some matters (for example, expropriatory tax claims) remain within the ambit of investment treaty protection, even while including broad tax carve-outs in some recent IIAs. Second, states are using investment treaty policy to better align the substantive standards of protection of IIAs with globally accepted tax standards and policies.

While this recent evolution points towards a harmonious coexistence of investment treaty protection and international taxation, in October 2024, the UN Committee of Experts on International Cooperation in Tax Matters chose, by contrast, to include a new model clause in the UN Model Tax Convention, which would categorically exclude recourse to Investor-State Dispute Settlement (ISDS) in tax-related disputes. Inclusion of this clause in DTCs would override existing investment treaty obligations in taxation matters.

This session will review the foregoing developments from a policy and international law perspective and will assess their potential impact for investors, given the current global increase in international tax disputes in various sectors. An initial presentation will outline dispute settlement under DTCs, followed by second presentation that critically analyzes the evolving role of investment treaty protection in tax-related disputes based on recent arbitral awards and developments in investment treaty policy. The session will conclude with a panel discussion of practitioners experienced in assisting multinational companies with navigating this shifting landscape.

This event is co-hosted by Covington and Burling LLP and United States Council for International Business.

Agenda and Presenters

• 5:30 p.m. Welcome Remarks from ICC US Arbitration Committee - Aren Goldsmith, DC Subcommittee Co-Chair Patrick Pearsall, DC Subcommittee Co-Chair
• 5:35 p.m. Opening Presentations - Professor Jonathan Schwartz, Temple Tax Chambers; Professor Robert Danon, University of Lausanne / DANON
• 6:25 p.m. USCIB / ICC Perspective - Jason File, USCIB
• 6:35 p.m. Panel Discussion
  • Moderators: Patrick Pearsall, A&O Shearman LLP; Aren Goldsmith, Oracle
  • Panelists: Clovis Trevino, Covington & Burling; Danielle Morris, WilmerHale
• 7:30 p.m. Cocktail Reception

For additional information, please email our Events Team.

Event Details

Thursday, March 27, 2025
Program: 5:30 p.m. EDT
Cocktail Reception: 7:30 p.m EDT

In-Person Attendance and Virtual Attendance

By Invitation Only

This event is closed to the press