Guernsey has signed the Multilateral Convention to implement tax treaty related measures to prevent Base Erosion and Profit Shifting (“Multilateral Instrument” or “MLI”). On 7 June 2017, the President of the Policy & Resources Committee, Deputy Gavin St Pier signed the agreement alongside over 60 other countries and jurisdictions in Paris.
The convention is a key outcome of the OECD/G20 Base Erosion and Profit Shifting (BEPS) project, which aims to offers concrete solutions for governments to close the gaps in existing international tax rules by transposing results from the OECD/G20 BEPS project into bilateral tax treaties worldwide.
Deputy St Pier said that it is an honour to sign this OECD agreement on behalf of Guernsey alongside so many other countries, including the major global economies. Guernsey was one of only four smaller jurisdictions invited to participate in the group that drafted this treaty.
The agreement is also the first multilateral agreement that Guernsey has signed itself in line with the development of the country’s international personality as envisaged by the Constitutional Investigation Committee during the last States’ term.
The convention will enter into force after signatories have completed their domestic requirements and deposited their instruments of ratification with the OECD.