OECD – Guidance for the development of synthesised texts. Multilateral Convention to Implement Tax Treaty Measures to Prevent. BEPS BEPS ACTION 15
OECD – Guidance for the development of synthesised texts. Multilateral Convention to Implement Tax Treaty Measures to Prevent. BEPS BEPS ACTION 15. The OECD Secretariat has prepared this Guidance for the development of synthesised texts to facilitate the interpretation and application of tax agreements modified by the Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting (hereafter the “MLI”). The Secretariat is grateful to several jurisdictions for their input to the guidance. This Guidance has been prepared to provide suggestions to Parties to the MLI for the development of documents they could produce to help users of the MLI to understand its effects on tax agreements it covers and modifies (the “Covered Tax Agreements”). The objective is to present in a single document and for each covered tax agreement: the text of a Covered Tax Agreement, including the text of relevant amending instruments; the elements of the MLI that have an effect on the Covered Tax Agreement as a result of the interaction of the MLI positions of its Contracting Jurisdictions; and information on the dates on which the provisions of the MLI have effect in each Contracting Jurisdiction for the Covered Tax Agreement. Such documents would be referred to as “synthesised texts”. To ensure clarity and transparency for the application of the MLI, Parties that intend to develop documents setting out the impact of the MLI on their Covered Tax Agreements should be as consistent as possible. This Guidance sets out a suggested approach for the development of synthesised texts. The Guidance also suggests sample language that could be included in the synthesised texts. At this stage, the sample language includes: a sample general disclaimer on the synthesised texts; a sample disclaimer on the entry into effect of the provisions of the MLI; for each MLI Article, “sample boxes” of the provisions of the MLI that could modify the covered tax agreements; and sample footnote texts on the entry into effect of the provisions of the MLI. This Guidance exists as a tool for members of the ad hoc Group of the MLI and they may use this tool to develop their own approach taking account of legal constraints and existing practices. It is also expected that third parties, including publishers and advisors, will also develop synthesised texts. To ensure clarity on the application of the MLI and to maximise consistency in the development of tools to ease the understandings of the MLI, it would be helpful for third parties to follow the approach set out in this Guidance. The OECD Secretariat therefore intends to make the Guidance available to a wider audience in 2018. The Guidance may be updated in future years on the basis of real-life experiences with developing synthesised texts. (November 2018).