On Wed 16.8.17, the text, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (signed by Australia in Paris on 7 June 2017) was tabled in both Houses of Federal Parliament, together with an assessment of Australia’s national interest in signing this Convention, together with the position it has taken in ‘reserving’ on various issues.

  • The Convention (known as the MLI) is a multilateral treaty designed to enable jurisdictions to swiftly modify their bilateral tax treaties to implement BEPS measures. Details of the main features of the MLI and Australia’s provisional adoption provisions are outlined on the Treasury website.
  • The National Interest Analysis has a citation of [2017] ATNIA 20 and is available on the Austlii website. This provides an excellent overview of the Multi-lateral Treaty Convention and the reasons Australia has adopted it and adopted the position it has.

[FJM; LTN 155, 16/8/17; TT August]

Headings from the ‘National Interest Analysis’

  1. Nature and timing of proposed treaty action
  2. Overview and national interest summary
  3. Reasons for Australia to take the proposed treaty action
    • Ensuring global consistency to prevent tax avoidance and protect Australia’s corporate tax base
    • Implementing new integrity rules to prevent BEPS and to improve the resolution of tax treaty-related disputes
  4. Obligations
  5. Implementation
  6. Costs
  7. Future treaty action
  8. Withdrawal or denunciation
  9. Consultation Summary
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