Tax avoidance pact signed by 68 countries

The UK is among 68 countries and jurisdictions that have signed a multilateral convention to implement a series of measures to update the network of bilateral tax treaties and reduce opportunities for tax avoidance by multinational enterprises. A further eight countries have formally expressed their intention to sign the pact.

It allows jurisdictions to transpose results from the Organisation for Economic Co-operation and Development and G20 base erosion and profit shifting project (BEPS) into their existing networks of bilateral tax treaties.

The new convention which is the first multilateral treaty of its kind will also strengthen provisions to resolve treaty disputes including through mandatory binding arbitration.

Angel Gurría OECD secretary-general said: ‘We are moving towards rapid implementation of the far-reaching reforms agreed under the BEPS project in more than 1 100 tax treaties worldwide and radically transforming the way that tax treaties are modified.’