Developing a multilateral instrument to modify bilateral tax treaties

✍ Scribed by OECD

• Publisher: OECD
• Year: 2014
• Tongue: English
• Leaves: 48
• Series: OECD/G20 Base Erosion and Profit Shifting Project.
• Category: Library

✦ Synopsis

This report identifies the issues arising from the development of a multilateral instrument that modifies bilateral tax treaties. Without a mechanism for swift implementation, changes to model tax conventions only widen the gap between the content of these models and the content of actual tax treaties. Developing such a mechanism is necessary not only to tackle base erosion and profit shifting, but also to ensure the sustainability of the consensual framework to eliminate double taxation. This is an innovative approach with no exact precedent in the tax world, but precedents for modifying bilateral treaties with a multilateral instrument exist in various other areas of public international law. Drawing on the knowledge of experts in public international law and taxation, the Report concludes that a multilateral instrument is desirable and feasible, and that negotiations for such an instrument should be convened quickly.  Read more...

✦ Table of Contents

Foreword
Table of contents
Abbreviations and acronyms
Executive summary
Introduction
A multilateral instrument is desirable and feasible
Developing a multilateral instrument is desirable: The benefits are numerous, while burdens can be addressed or avoided
Developing a multilateral instrument is feasible: Legal mechanisms are available to achieve a balanced instrument that addresses the technical and political challenges
Note. The nature of the treaty-related BEPS measures will facilitate the conclusion of a targeted multilateral instrument, which could be further expanded at a later dateNext steps: Scoping the International Conference
Annex A.A toolbox for a multilateral instrument for the swift implementation of BEPS measures
Executive summary
Introduction
A Multilateral instrument can modify the network of bilateral tax treaties
A multilateral instrument can provide flexibility in the level of commitment
A multilateral instrument can ensure transparency and clarity of commitments
Conclusion
Notes.

✦ Subjects

Corporations -- Taxation -- Law and legislation;Double taxation;Double taxation -- Treaties