Canada and Switzerland deposit BEPS MLI ratification documents with OECD

Canada and Switzerland have deposited their instruments of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), the OECD today announced.

The MLI enters into force for both countries on December 1.

With the addition of Canada and Switzerland, 33 countries have deposited their instruments of ratification or acceptance of the MLI with the OECD. Altogether, 89 countries have signed the multilateral treaty and six others have declared an intent to sign.

The MLI is designed to allow countries to swiftly modify their existing bilateral tax treaties to incorporate additional provisions agreed to in 2015 as a result of the OECD/G20 base erosion profit shifting (BEPS) project.

The new provisions are designed to combat tax avoidance by multinational groups and speed the resolution of cross border tax disputes.