The importance and effects of BEPS multilateral convention in international tax law
The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting is a result of the BEPS project carried out by the OECD and G20. The object and purpose of the BEPS Multilateral Convention is swift and consistent implementation of the agreed solutions...
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| Format: | Article |
| Language: | English |
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Faculty of Law, Niš
2017-01-01
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| Series: | Zbornik Radova Pravnog Fakulteta u Nišu |
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| Online Access: | http://scindeks-clanci.ceon.rs/data/pdf/0350-8501/2017/0350-85011775013P.pdf |
| _version_ | 1818289277700669440 |
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| author | Popović Dejan Ilić-Popov Gordana |
| author_facet | Popović Dejan Ilić-Popov Gordana |
| author_sort | Popović Dejan |
| collection | DOAJ |
| description | The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting is a result of the BEPS project carried out by the OECD and G20. The object and purpose of the BEPS Multilateral Convention is swift and consistent implementation of the agreed solutions aimed at preventing tax evasion or avoidance via modifications of the existing bilateral tax treaties, while providing for a high level of flexibility in the implementation. Signed on 7 June 2017, the Convention encompasses provisions on hybrid mismatches, treaty abuse, avoidance of permanent establishment status, improving dispute resolution and arbitration. The first four groups of norms have a bilateral impact on the relations between contracting jurisdictions regulated by their covered tax agreements; the effect of the optional provisions on arbitration is multilateral. The Convention contains two minimum standards each party is required to include in its covered tax agreements in an offered manner. The first one refers to the prevention of treaty shopping arrangements, while the second one concerns improvements in the dispute resolution. The flexibility is assured by granting each party the right to specify the tax treaties to which the Convention applies, to opt out of a wide range of provisions (apart from the minimum standards) set out in the Convention as eligible for reservations, as well as to select an offered alternative. Serbia's position vis-à-vis the given choices has been elaborated. Serbia specified all its tax treaties as the 'covered tax agreements' but Germany, Switzerland and Sweden did not do the same with their respective treaties with Serbia. Serbia opted out of five articles of the Convention. While not contesting its importance, one may conclude that the Convention does not represent an announcement of a new multilateral tax order but rather a multilateral agreement of a number of states motivated by practical considerations. |
| first_indexed | 2024-12-13T02:09:43Z |
| format | Article |
| id | doaj.art-b30da000c0cb4c5b968ac2b16d0ec2e8 |
| institution | Directory Open Access Journal |
| issn | 0350-8501 2560-3116 |
| language | English |
| last_indexed | 2024-12-13T02:09:43Z |
| publishDate | 2017-01-01 |
| publisher | Faculty of Law, Niš |
| record_format | Article |
| series | Zbornik Radova Pravnog Fakulteta u Nišu |
| spelling | doaj.art-b30da000c0cb4c5b968ac2b16d0ec2e82022-12-22T00:03:03ZengFaculty of Law, NišZbornik Radova Pravnog Fakulteta u Nišu0350-85012560-31162017-01-015675133110.5937/zrpfni1775013P0350-85011775013PThe importance and effects of BEPS multilateral convention in international tax lawPopović Dejan0Ilić-Popov Gordana1University of Belgrade, Faculty of Law, Belgrade, SerbiaUniversity of Belgrade, Faculty of Law, Belgrade, SerbiaThe Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting is a result of the BEPS project carried out by the OECD and G20. The object and purpose of the BEPS Multilateral Convention is swift and consistent implementation of the agreed solutions aimed at preventing tax evasion or avoidance via modifications of the existing bilateral tax treaties, while providing for a high level of flexibility in the implementation. Signed on 7 June 2017, the Convention encompasses provisions on hybrid mismatches, treaty abuse, avoidance of permanent establishment status, improving dispute resolution and arbitration. The first four groups of norms have a bilateral impact on the relations between contracting jurisdictions regulated by their covered tax agreements; the effect of the optional provisions on arbitration is multilateral. The Convention contains two minimum standards each party is required to include in its covered tax agreements in an offered manner. The first one refers to the prevention of treaty shopping arrangements, while the second one concerns improvements in the dispute resolution. The flexibility is assured by granting each party the right to specify the tax treaties to which the Convention applies, to opt out of a wide range of provisions (apart from the minimum standards) set out in the Convention as eligible for reservations, as well as to select an offered alternative. Serbia's position vis-à-vis the given choices has been elaborated. Serbia specified all its tax treaties as the 'covered tax agreements' but Germany, Switzerland and Sweden did not do the same with their respective treaties with Serbia. Serbia opted out of five articles of the Convention. While not contesting its importance, one may conclude that the Convention does not represent an announcement of a new multilateral tax order but rather a multilateral agreement of a number of states motivated by practical considerations.http://scindeks-clanci.ceon.rs/data/pdf/0350-8501/2017/0350-85011775013P.pdfBEPSbilateral tax treatiescompatibility clausedouble taxationinternational tax lawmultilateral conventiontax planning |
| spellingShingle | Popović Dejan Ilić-Popov Gordana The importance and effects of BEPS multilateral convention in international tax law Zbornik Radova Pravnog Fakulteta u Nišu BEPS bilateral tax treaties compatibility clause double taxation international tax law multilateral convention tax planning |
| title | The importance and effects of BEPS multilateral convention in international tax law |
| title_full | The importance and effects of BEPS multilateral convention in international tax law |
| title_fullStr | The importance and effects of BEPS multilateral convention in international tax law |
| title_full_unstemmed | The importance and effects of BEPS multilateral convention in international tax law |
| title_short | The importance and effects of BEPS multilateral convention in international tax law |
| title_sort | importance and effects of beps multilateral convention in international tax law |
| topic | BEPS bilateral tax treaties compatibility clause double taxation international tax law multilateral convention tax planning |
| url | http://scindeks-clanci.ceon.rs/data/pdf/0350-8501/2017/0350-85011775013P.pdf |
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