Canada Ratifies the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting

August 29, 2019

Canada deposited its instrument of ratification today with the Depositary of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the "Multilateral Instrument or "MLI").

The MLI is a multilateral convention that will implement a number of tax treaty measures designed to reduce opportunities for tax avoidance by multinational enterprises. Canada became a signatory to the MLI on June 7, 2017.

The MLI will apply to Canada's tax treaties that are covered by the MLI. A tax treaty will be covered by the MLI if each of the parties to the treaty have listed that treaty for purposes of the MLI and have brought the MLI into force.

The MLI will enter into force for Canada on December 1, 2019 and will enter into effect for any particular covered tax treaty in accordance with the provisions of Article 35 of the MLI. The MLI will apply to some of Canada's tax treaties with effect as early as January 1, 2020.

For further information contact:

Tax Legislation Division
613 369 3763

Please visit the OECD website for additional information on the MLI

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