The OECD's Base Erosion and Profit Shifting (BEPS)
initiatives have significantly influenced international tax
policies, focusing on curbing tax avoidance, disallowing
treaty-shopping and harmonising tax rates around the globe.
Here's a detailed look at these developments.
BEPS Multilateral Instrument (MLI)
By way of summary, the BEPS project, initiated by the OECD and
G20, aims to close gaps in international tax rules that allow
corporate profits to be shifted to low or no-tax locations. A
critical component of this initiative is the BEPS Multilateral
Instrument (MLI). The MLI allows countries to update
their existing bilateral tax treaties swiftly to incorporate BEPS
measures without the need for lengthy
renegotiations.
