International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Tuesday, October 31, 2017

Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS

On 7 June 2017, over 70 Ministers and other high-level representatives participated in the signing ceremony of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ("Multilateral Instrument" or "MLI").  Signatories include jurisdictions from all continents and all levels of development. A number of jurisdictions have also expressed their intention to sign the MLI as soon as possible and other jurisdictions are also actively working towards signature.

The MLI offers concrete solutions for governments to close the gaps in existing international tax rules by transposing results from the OECD/G20 BEPS Project into bilateral tax treaties worldwide. The MLI modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. It also implements agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms while providing flexibility to accommodate specific tax treaty policies. 

KEY DOCUMENTS

The text of the Multilateral Instrument (MLI) and its Explanatory Statement were developed through a negotiation involving more than 100 countries and jurisdictions and adopted on 24 November 2016, under a mandate delivered by G20 Finance Ministers and Central Bank Governors at their February 2015 meeting. The MLI and its Explanatory Statement were adopted in two equally authentic languages, English and French.

Download the text of the MLI (PDF) 

Download the Explanatory Statement (PDF)

http://lawprofessors.typepad.com/intfinlaw/2017/10/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-beps.html

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