On 7 June 2017, the Treasury Minister of Isle of Man, Mr. Alfred Cannan MHK has signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“Multilateral Instrument” or “MLI”) in Paris.
Mr Cannan said, “As a responsible and reputable jurisdiction the Isle of Man has a clear policy of complying with international standards. We are pleased to support this latest move to update international tax rules and it has been an honor to represent the Island at the signing ceremony in Paris”.
The ‘Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS’ enables new measures to be incorporated into thousands of tax treaties around the world, without the need for countries to undertake multiple bilateral negotiations.
BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits between jurisdictions in order to minimize tax liability.