OECD Marks 50 Years Of The Model Tax Convention

by Ulrika Lomas, for LawAndTax-News.com, Brussels

04 September 2008

Private sector representatives from over 103 countries and 650 senior tax officials, will attend a conference at OECD headquarters next week to celebrate the 50th anniversary of an instrument that plays a crucial role in removing tax-related barriers to cross-border trade and investment.

The event, to be held between September 8-9, 2008, will mark the achievements of what is now known as the OECD Model Tax Convention on Income and on Capital.

The conference is due to be opened on Monday by OECD Secretary-General, Angel Gurría, with a speech underscoring the importance of tax treaties in eliminating obstacles to cross-border trade and investment. France's Minister for the Economy, Industry and Employment, Christine Lagarde, will deliver a keynote address on Tuesday.

The OECD Model Tax Convention is the basis for negotiation and application of bilateral tax treaties between countries designed to assist business while helping to prevent tax evasion and thereby ensure the full and fair enforcement of tax laws in a globalized economy.

It provides agreed guidance on how treaties should be applied; in the event of disputes, courts frequently refer to these guidelines as the authoritative interpretation of bilateral tax treaties.

Half a century ago, when the Fiscal Committee of the Organisation for European Economic Co-operation (OEEC), which became the OECD a few years later, published a first draft of the model, there were only a few dozen such agreements in force between governments.

Today, more than 3,000 tax treaties in force around the world are based on the OECD Model, which is regularly updated. The conference will coincide with publication of the latest update.

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