Tax multilateral agreements (e.g., OECD) ()
DESCRIPTION: A tax related multilateral agreement, also called a clearing trade or side deal, refers to an agreement between parties or states regarding the application of fiscal legislature among different countries.
eira:ABBhttp://data.europa.eu/dr8/LegalAgreementContract
dct:modified2023-07-26
dct:identifierhttps://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf
dct:titleTax multilateral agreements (e.g., OECD)
dct:descriptionThe Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) is a legal instrument designed to prevent tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. It was developed by the OECD and G20 countries and updates the existing network of bilateral tax treaties to reduce opportunities for tax avoidance by multinational enterprises.
dct:publisherOrganisation for Economic Co-operation and Development (OECD)
dct:sourcehttps://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf
skos:example1. A multinational company based in Country A has operations in Country B. Under the MLI, Country B can prevent the company from exploiting gaps in the bilateral tax treaty to shift profits to low-tax jurisdictions.,2. Country C and Country D have a bilateral tax treaty. Both countries are signatories to the MLI. The provisions of the MLI can be used to update the bilateral treaty to prevent treaty abuse.,3. A multinational enterprise based in Country E is involved in a dispute over double taxation with Country F. The MLI provides mechanisms for resolving such disputes.
eira:concepteira:SolutionBuildingBlock
skos:noteThe MLI is a multilateral treaty that allows jurisdictions to transpose results from the OECD/G20 BEPS Project into their existing bilateral tax treaties, modifying their application in order to implement the BEPS measures. It covers areas such as hybrid mismatch arrangements, treaty abuse, permanent establishment, and improving dispute resolution.
eira:viewLV-Legal Agreements