The Isle of Man became the second jurisdiction to ratify the multilateral convention to implement tax treaty-related measures to prevent base erosion and profit shifting with the OECD’s Secretary-General, Angel Gurría on 25 October.
It means that new measures can be incorporated into thousands of tax treaties around the world, without the need for countries to undertake multiple bilateral negotiations.
The new treaty forms part of the OECD’s base erosion and profit shifting (Beps) project.
Beps refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits between jurisdictions to minimise tax liability.
The Isle of Man committed to meet the OECD’s Beps standards in June 2016 and the treaty was ratification by IoM assembly the Tynwald on 17 October 2017.
