Multilateral Instrument: One step closer - 21 August 2018
On 16 August 2018, the Treasury Laws Amendment (OECD Multilateral Instrument) Bill 2018 (the Bill) completed its passage through Parliament and now awaits Royal Assent. The Bill gives force of law in Australia to the Multilateral Instrument (the MLI). The MLI (BEPS Action 15) is designed to swiftly implement the tax treaty-related measures arising from the G20/OECD BEPS project without the need to renegotiate each bilateral tax treaty.
If Royal Assent and ratification of the MLI occurs prior to the end of September 2018, the MLI should enter into force for Australia from 1 January 2019. Based on Australia’s tax treaty partners’ known positions (provisional and final), the MLI will modify 31 of Australia’s 44 tax treaties. Although the MLI will apply prospectively, groups that currently benefit from tax treaties should carefully analyse the impact of the MLI in respect of existing arrangements and transactions.
Published: August 2018