If in any future double taxation convention with any third state Bulgaria agrees on an arbitration clause, the following new provisions shall be inserted immediately after paragraph 4 of Article 25 and shall have effect between Bulgaria and the Netherlands from the date on which the convention between Bulgaria and that third state becomes effective:
- “5.Where,
- a)under paragraph 1, a person has presented a case to the competent authority of a Contracting State on the basis that the actions of one or both of the Contracting States have resulted for that person in taxation not in accordance with the provisions of this Convention; and
- b)the competent authorities are unable to reach an agreement to resolve that case pursuant to paragraph 2 within two years from the presentation of the case to the competent authority of the other Contracting State; any unresolved issues arising from the case shall be submitted to arbitration if the person so requests. These unresolved issues shall not, however, be submitted to arbitration if a decision on these issues has already been rendered by a court or administrative tribunal of either State. Unless a person directly affected by the case does not accept the mutual agreement that implements the arbitration decision, that decision shall be binding on both Contracting States and shall be implemented notwithstanding any time limits in the domestic laws of these States. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this paragraph.The Contracting States may release to an arbitration board, established under the provisions of this paragraph, such information as is necessary for carrying out the arbitration procedure. The members of the arbitration board shall be subject to the limitations of disclosure described in paragraph 2 of Article 26 with respect to the information so released.
- 6.The provisions of paragraph 5 shall not apply to cases falling within paragraph 5 of Article 4 of this Convention.
- 7.In cases, where proceedings have been initiated before the date on which paragraph 5 becomes effective, the two year period referred to in paragraph 5, subparagraph b), shall start on that date.”
