ICC Document & publication

ICC Comments on OECD Discussion Draft on BEPS Action 15: Development of a Multilateral Instrument to Implement the Tax Treaty related BEPS Measures

In the context of the OECD Base Erosion and Profit Shifting (BEPS) Project mandated by the G20, ICC submitted high level and fundamental comments on the OECD’s Discussion Draft on BEPS Action 15: Development of a Multilateral Instrument to Implement the Tax Treaty related BEPS Measures.

The Report on Action 15 of the BEPS Action Plan (Developing a Multilateral Instrument to Modify Bilateral Tax Treaties) concludes that a multilateral instrument to modify bilateral tax treaties to implement the tax treaty-related BEPS measures is not only feasible but also desirable, and that negotiations for the instrument should be convened quickly. Based on this report, an Ad Hoc Group was established on 27 May 2015 with the objective of developing a multilateral instrument to modify existing bilateral tax treaties in order to swiftly implement the tax treaty measures developed in the course of the OECD-G20 BEPS Project.

The Ad Hoc Group now includes 96 countries all participating on an equal footing, as well as a number of non-State jurisdictions and international organisations participating as Observers. The Ad Hoc Group aims to conclude its work and open the multilateral instrument for signature by 31 December 2016.

The Request for Input outlined the background and purpose of the multilateral instrument and describes briefly the technical issues arising from its development, including the issues to be considered in the context of the optional provision on MAP arbitration.

Answers to the specific questions were included in the request for input, as well as other technical issues that may arise from implementing the treaty-related BEPS measures in the context of the network of existing bilateral tax treaties.

It is to this end that ICC has submitted its comments for the OECD’s consideration.