The Organisation for Economic Co-operation and Development (OECD) released the text of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) under BEPS Action 15 (the MLI) and explanatory notes on November 24. The MLI will be applied alongside existing tax treaties, modifying their application in order to implement the BEPS measures. The tax treaty related BEPS measures covered by the MLI include (elements of): (i) Action 2 on hybrid mismatch arrangements, (ii) Action 6 on treaty abuse, (iii) Action 7 on the artificial avoidance of the permanent establishment (PE) status; and (iv) Action 14 on dispute resolution. The substance of the tax treaty provisions relating to these actions was agreed under the final BEPS package released in October 2015.
A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details.
