The Government of Belize became the 86th country to sign the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting also referred to as the BEPS multilateral instrument.
This convention enables governments to “close the gaps in existing international rules that allow corporate profits to “disappear” or be artificially shifted to low or no tax environments, where companies have little or no economic activity,” reported one international media outlet.
The agreement has been hailed as the world’s leading instrument for updating bilateral tax treaties and reducing opportunities for tax avoidance by multinational enterprises. That is because it aims to prevent treaty abuse, improve dispute resolution, prevent the artificial avoidance of permanent establishment status and neutralize the effects of hybrid mismatch arrangements.
The convention exists alongside agreed tax treaties.
Source: Breaking Belize News
