The MLI May Preserve the Essentially Bilateral Nature of Tax Treaties and Embrace a Strong Anti-Avoidance Approach to the Application of Treaty Provisions
You can manage bookmarks using lists, please log in to your user account for this.
Media type:
E-Book
Title:
The MLI May Preserve the Essentially Bilateral Nature of Tax Treaties and Embrace a Strong Anti-Avoidance Approach to the Application of Treaty Provisions
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 19, 2021 erstellt
Description:
The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS), known as the Multilateral Instrument (MLI), is an innovative multilateral method for the modification of bilateral tax treaties (BTTs). The MLI has transposed part of the results of the OECD/G20’s BEPS Project against tax avoidance into a network of about 1,700 BTTs (2020). Nevertheless, while the MLI is multilateral in its modifying method, it maintains international tax law’s bilateral nature, and, by introducing BEPS Project Action 6 and Action 14 minimum standards into the covered BTTs, it has embraced a strong anti-avoidance approach concerning treaty provisions application. This approach presents some risks as parties (a state or jurisdiction that has signed the MLI) may develop divergent interpretations. By analysing the MLI’s substantive provisions, Part I covers how the MLI works. Part II explains why, despite the MLI, the international tax law is still based on BTTs. Part III reflects on the reasons behind possible different interpretations concerning the anti-avoidance approach