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Implementation of the OECD Multilateral Instrument

On 7 June 2017, Australia signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the Convention), otherwise referred to as the Multilateral Instrument.

The Convention, a key outcome of the G20/OECD Base Erosion and Profit Shifting (BEPS) project, was developed to efficiently modify jurisdictions’ bilateral tax treaties to prevent their exploitation for tax avoidance purposes and to improve tax treaty-based dispute resolution mechanisms.

This Exposure Draft legislation would give the Convention the force of law in Australia. Pending the ratification of the Convention by Australia and its bilateral tax treaty partners, the Convention will modify the majority of Australia’s bilateral tax treaties to implement the relevant BEPS outcomes.

The Government invites all interested parties to make a submission in relation to the Exposure Draft legislation and its accompanying Explanatory Memorandum. Following this consultation process, the Explanatory Memorandum will be reviewed to reflect recent developments affecting the status of the Convention, including its recent signature by Malaysia.

The Convention and its Explanatory Statement, along with further information on the BEPS project and the OECD Model Tax Convention on Income and on Capital, are available on the OECD’s website.

Responding

You can submit responses to this consultation up until 23 February 2018.

Interested parties are invited to comment on this consultation.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

How to respond

Post

Address written submissions to:

Manager
Base Erosion and Profit Shifting Unit
The Treasury
Langton Crescent
PARKES ACT 2600