Challenges in Applying the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting
Movchan, Daryna |
Recenzentas / Rewiewer |
Licencinė sutartis Nr. MRU-EDT-610
The adoption of Multilateral Instrument was a significant step in the international tax regulation. However, the Convention would be futile in case its provisions would not be effective enough to achieve the set purpose. Since the provisions of the Multilateral Instrument started to change the bilateral tax treaty network, there is the need to analyse the Convention and the challenges it raises in practice. Therefore, this research is aimed at determination of the challenges caused by the flexible nature of prevention of treaty abuse and dispute resolution provisions and answers the following question: does a flexible nature of the prevention of treaty abuse and dispute resolution provisions provided by the Multilateral Instrument undermines its effectiveness; and what solutions could be taken to address the challenges raised? The research analyses effectiveness of the provisions from the two perspectives: (1) whether the overall aim of the OECD BEPS package is fulfilled and Multilateral Instrument is treated as merely one of the mechanisms used for that purpose (broad perspective) and (2) whether the certain provisions of Multilateral Instrument are sufficiently drafted to achieve its mission as an international convention (narrow perspective). On that basis, the recommendations are provided for further improvements.