The OCED announced May 28 that over 80 countries have agreed to participate in the development of a multilateral instrument to implement the OECD’s base erosion and profit shifting (BEPS) initiative.
Work on the multilateral instrument has already commenced; the first meeting was held May 27, the OECD said.
The ad hoc group will be chaired by Mike Williams of the UK. Vice-chairs are Liao Tizhong of the People’s Republic of China, Mohammed Amine Baina of Morocco, and Kim S. Jacinto-Henares of the Philippines.
In a September 16, 2014, report, the OECD concluded that use of a multilateral instrument to amend existing tax treaties to implement the BEPS plan was both legally possible and desirable. The mechanism is designed to streamline the process for incorporating the BEPS action plan recommendations into the 3,000 existing bilateral tax treaties, dispensing with the need to negotiate the treaties separately.
A mandate to establish an ad hoc group to develop the multilateral instrument was endorsed by G20 Finance Ministers in February.
The next ad hoc group meeting will take place November 5–6.
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