The Australian government on August 9 published the synthesized texts of Australia’s bilateral tax treaties with France, Finland, and Malta as modified by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
This document was prepared by Australia in consultation with the competent authorities of each of the countries to reflect the shared understanding of the modifications made to the treaties by the MLI.
The MLI was developed in an OECD-led effort with the aim of quickly adding to existing bilateral tax treaties new treaty provisions agreed to by nations in 2015 as an outcome of the OECD/G20 base erosion profit shifting (BEPS) plan. These BEPS tax treaty provisions are designed to counter tax avoidance by multinationals and improve cross-border dispute resolution mechanisms.
The MLI was signed by Australia, Finland, France, and Malta on June 7, 2017. Instruments ratifying the MLI were subsequently deposited with the OECD by each country.
The MLI entered into force on January 1, 2019, for Australia and France, on April 1, 2019, for Malta, and on June 1, 2019, for Finland.
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