The Organisation for Economic Co-operation and Development (OECD) today announced that work has begun on the development of a multilateral instrument to implement the tax treaty-related base erosion and profit shifting (BEPS) project.
The BEPS project set out 15 actions, many of which cannot be addressed without amending bilateral tax treaties. As noted in today’s OECD release, the sheer number of treaties in effect would make implementing these changes on a treaty-by-treaty basis “a very lengthy process.”
BEPS Action 15 analysed the possibility of developing a multilateral instrument in order to allow countries to swiftly amend their tax treaties to implement the tax treaty-related BEPS recommendations. The report concluded that such a multilateral instrument is not only feasible but also desirable, and that negotiations for the instrument need to be convened quickly.
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