Fiji signs OECD Multilateral Instrument
FIJI SIGNS OECD MULTILATERAL INSTRUMENT
Fiji signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) otherwise known as the Multilateral Instrument (MLI) in Paris along with 67 other countries on 7th June, 2017.
This is a step forward to implement tax avoidance strategies that exploit gaps and mismatches in tax rules.
Fiji Revenue & Customs Authority (FRCS) Board chairman, Mr. Ajith Kodagoda represented Fiji at the signing ceremony in Paris.
The MLI offers concrete solutions for governments to close the gaps in existing international tax rules by transposing results from the BEPS Project into bilateral tax treaties worldwide. The MLI modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. It also implements agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms while providing flexibility to accommodate specific tax treaty policies.
Fiji has also signed the mandatory binding arbitration which gives certainty to taxpayers that treaty-related disputes will be resolved within a specified timeframe.
FRCS will take the lead role in implementing the MLI strategies.
“FRCS as the arm of the Fijian Government is happy to be on board with 67 other countries in implementing the Multilateral Instrument,” FRCS Chief Executive Officer, Mr. Visvanath Das said.
“We already have double taxation agreements with few countries. The MLI will further enable us to establish methods for eliminating double taxation,” Mr. Das said.
“The Authority has been working closely with Organisation for Economic Co-operation and Development (OECD) and we look forward for further guidance to ensure we implement the mandatory MLI provisions,” he said.
Fiji is the only Pacific Islands Tax Administration Association (PITAA) member that has signed the MLI and as the PITAA Secretariat Chair, Fiji is also taking the lead role in the fight against BEPS. Through the Memorandum of Understanding signed between FRCS
and PITAA recently, member countries can seek assistance from FRCS to share insight on the benefits of being a signatory to the Multilateral Convention.
FRCS Board Chairman at the OECD Multilateral Instrument signing ceremony in Paris.
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