Canada Begins Ratification Process For Multilateral Tax Convention To Implement BEPS

In this Update

• Canada began its domestic procedures to ratify the OECD's Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI) on January 31, 2018
• The MLI will modify a significant number of existing bilateral tax treaties, including up to 75 of Canada's Covered Tax Agreements
• The most significant modification will be to add a broad anti-avoidance rule
• Overview of when the MLI is expected to come into effect for particular Covered Tax Agreements
• A discussion on recent OECD commentary relevant to the MLI

The OECD's Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting [PDF] was tabled in the House of Commons on January 31, 2018. This is the first step in the process for Canada to ratify the MLI, which it signed in June 2017.