Guernsey ratifies multilateral tax treaty aimed at closing MNE tax loopholes

Today, Guernsey became the 20th jurisdiction to deposit with the OECD its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).

The MLI is designed to swiftly incorporate into existing tax treaties the provisions agreed to in the 2015 OECD/G20 base erosion profit shifting (BEPS) project.

The BEPS provisions are aimed at shutting down tax loopholes used by multinationals and easing cross-border tax dispute resolution.

For Guernsey, the MLI will enter into force on June 1.