Canada has ratified a multilateral tax treaty developed by more than 100 countries that is designed to reduce opportunities for tax avoidance by multinationals and improve cross-border tax dispute resolution.
The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) was ratified by Canada on June 21, Canada’s Department of Finance said.
The treaty will allow Canada to swiftly modify existing bilateral tax treaties that Canada has entered into with other nations.
Finance Minister Bill Morneau said he welcomed the Royal Assent of Bill C-82, An Act to implement a multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting, which allowed for ratification of the agreement
Canada must deposit its instruments of ratification with the OECD for the MLI to enter into force.
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