The OECD Multilateral Instrument for Tax Treaties: Analysis and Effects, as the name suggests, covers the scope, interpretation and relationship of the Multilateral Instrument (MLI) with tax treaties. The MLI for tax treaties proposed in OECD BEPS Action 15 will lead to the modification of numerous tax treaties. As tax treaties can have different wordings, terminologies and structures, a great challenge is to find a proper way to accomplish their modification without distorting the underlying framework or triggering undesirable effects. In light of these challenges, where the tax treaties are being rewritten to include the MLI, this book analyses the MLI which was signed by over seventy jurisdictions on 7 June 2017, explains its practical effects and examines possible future developments.
What’s in this book:
This book addresses topics such as:
- procedural mechanisms on how the new measures to prevent base erosion and profit shifting (BEPS) will interact with and complement existing tax treaties;
- scope of the MLI, in order to ascertain which tax treaties and taxes are covered;
- interpretation of terms used in the MLI and the relationship between the languages used in the MLI and in particular tax treaties;
- implementation of the minimum standard through the MLI, as well as how states can exercise various options offered by the MLI and reserve the right not to apply certain provisions of the MLI;
- legal consequences of the exercise of options and reservations for the other states;
- notification procedure through which states declare their choices; and
- possibilities and procedures for withdrawal from the obligations entered into upon signing the MLI.
Finally, the book discusses whether the mechanism of the MLI can serve as a role model for future changes to the OECD Model Convention.
How this will help you:
Containing critical analyses by leading scholars and academics, this book allows practitioners to understand the practical effects of the new system, allowing lawyers and practitioners to find solutions to problems in their respective jurisdictions. This book enables readers to gain insights into the policy developments surrounding the MLI. Thus, this book serves as a handbook for academics, tax officials and judges who deal with or are interested in the field of international taxation, to ensure uniform application and interpretation of the techniques for aligning treaties with the MLI.
Scope of the Multilateral Instrument
Interpretation of Terms Used in the Multilateral Instrument
The Relevance of the Conference of the Parties for the Interpretation and Amendment of the Multilateral Instrument
Authentic Languages and Official Translations of the Multilateral Instrument and Covered Tax Agreements
Josef Schuch & Jean-Philippe Van West
The Legal Relevance of the Minimum Standard in the OECD/BEPS Project
The Relationship Between Tax Treaties and the Multilateral Instrument: Compatibility Clauses in the Multilateral Instrument
Sriram Govind & Pasquale Pistone
Options under the Multilateral Instrument
Alexandra Miladinovic & Alexander Rust
Reservations to the Multilateral Instrument
Notifications According to the Multilateral Instrument and Consolidated Versions of Tax Treaties
Consequences of Withdrawal from or Termination of the Multilateral Instrument
Future Changes to Covered Tax Agreements and of the Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent BEPS
- Michael Lang
- Pasquale Pistone
- Alexander Rust
- Josef Schuch
- Claus Staringer