UK tax professionals welcome landmark multilateral instrument

Although a leading UK tax professional noted that the landmark signing of the OECD’s multilateral instrument (MLI) by 68 jurisdictions could save “decades of negotiation” in international efforts to tackle avoidance, there was a note of caution regarding potential complexity since countries were presented with a range of options.

International cooperation of the kind reflected in the MLI, officially known as the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS, is far better than unilateral action by individual jurisdictions, said Glyn Fullelove, vice president and chair of the technical committee at the Chartered Institute of Taxation …

Dan Neidle, a partner at Clifford Chance, told Tax Analysts that the “big question” in relation to treaty abuse will be how the principal purpose test is interpreted and applied in practice. Read more:

My news story for Tax Analysts, June 9 (paywall)