CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Canada Ratifies BEPS MLI

Canada Ratifies BEPS MLI

by Mike Godfrey,, Washington

05 July 2019

On June 21, 2019, Canada ratified the BEPS multilateral convention, to introduce amendments to its network of tax treaties to prevent abuse.

Canada signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) in June 2017. The MLI was developed through negotiations involving more than 100 countries and jurisdictions.

The MLI will allow Canada to modify its existing tax treaties to include measures developed under the OECD/G20 BEPS project without having to individually renegotiate these treaties. The instrument will implement minimum standards to counter treaty abuse, prevent the artificial avoidance of permanent establishment status, neutralize the effects of hybrid mismatch arrangements, and improve dispute resolution mechanisms.

Jurisdictions that sign the MLI must identify which of their treaties they wish the MLI to apply to and modify.

Canadian Finance Minister Bill Morneau said: "Our Government is committed to building an economy that helps people and businesses get ahead. To do that, we need a tax system that is effective and fair. The MLI will help us build on actions we've already taken to enhance the integrity of Canada's tax system – both at home and abroad – and give Canadians greater confidence that the system is working in their best interest."

TAGS: compliance | tax | business | double tax agreement (DTA) | tax compliance | tax avoidance | Organisation for Economic Co-operation and Development (OECD) | agreements | legislation | transfer pricing | Canada | G20 | standards | Tax | Tax Evasion | BEPS

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »