Global Focus on BEPS
The OECD’s Multilateral Instrument
The multilateral instrument is an important part of BEPS implementation, delivering many of the BEPS recommendations and several of the minimum standards through changes to the around 3,400 bilateral tax treaties in existence.
Through this innovative instrument, negotiated between 100 jurisdictions but open to all the changes will be adopted into tax treaties over the coming years, starting as early as of 1 January 2019.
But while delivering rapid change, the MLI also has the potential to deliver business a whole range of unwelcome business outcomes including:
- Higher costs
- Constrained funding opportunities
- The lack of ability to efficiently move funds
- Greater likelihood of tax disputes
- Possibly even the need to completely restructure or abandon parts of a business.
Worryingly, only 7% of EY webcast poll respondents said they fully understood the MLI; yet 58% say it will have a significant or moderate impact on their tax strategy.
For business, investment location choices may be based on long-standing organizational routines; one may be familiar with every aspect of investing through a particular location and using particular vehicles. These routines may no longer be available; putting new routines in place will take time and considerable effort. Companies will therefore need to ask themselves a series of questions which in turn will permit them to formulate a robust assessment and action plan.
On these pages you can gain access to EY’s latest thinking, insights and information on leading practices to help you form your response.
A deep understanding of country MLI positions will be an imperative when assessing and addressing your organization’s potential risks. In this section, a series of detailed country tax alerts are available, as well as EY Global tax Alerts reporting on MLI-related issues from the OECD. Check back often for updates.
Take a closer look at the selections of the first set of jurisdictions to sign the MLI, identifying trends, themes and outliers among the data.
This short, 3-minute video explores some of the more significant business impacts of the OECD's Multilateral Instrument.
Replay the archive of our 22 June 2017 Thought Center webcast, the final in a series titled “Navigating in a post-BEPS world.” During the webcast, EY professionals discussed the objectives, mechanics, timing and potential business impacts of the MLI, including region-by-region discussions on the country MLI positions known thus far.
Replay the archive of our 22 March 2017 Thought Center webcast, the third in a series titled “Navigating in a post-BEPS world.” During the webcast, EY professionals discussed the procedural aspects of the MLI implementation, interaction with existing treaties, countries’ positions and expectations and the practical relevance of the provisions.
Pascal Saint-Amans, leader of the Organisation for Economic Cooperation and Development’s (OECD) Centre for Tax Policy and Administration shares his thoughts with EY on a series of key topics, including the MLI. EY’s Subject Matter Professionals around the world provides insights and commentary in response.
EY Tax Policy & Controversy leaders discuss what outcomes businesses should be expecting from the OECD’s Multilateral Instrument as part of a recent panel discussion.
The OECD website provides access to all MLI related materials including the text of the MLI, Signatories and Parties (MLI positions), Explanatory Statements and Frequently Asked Questions.
In this article by Marlies de Ruiter, EY’s International Tax Services Policy Leader, the context and objectives of the MLI are explored before looking at some of the most important business impacts.