Assignment 15

Title- Tax Avoidance Treaty and its prospects for international relations.

Ministers and high-level officials from Barbados, Cte d'Ivoire, Jamaica, Malaysia, Panama and Tunisia have today signed the BEPS Multilateral Convention bringing the total number of signatories to 78. This Convention updates the existing network of bilateral tax treaties and reduces opportunities for tax avoidance by multinational enterprises.

In addition to those signing today, Algeria, Kazakhstan, Oman and Swaziland have expressed their intent to sign the Convention, and a number of other jurisdictions are actively working towards signature by June 2018. So far, four jurisdictions - Austria, the Isle of Man, Jersey and Poland - have ratified the Convention, which will enter into force three months after a fifth jurisdiction deposits its instrument of ratification.

The Convention is the first multilateral treaty of its kind, allowing jurisdictions to integrate results from the OECD/G20 BEPS Project into their existing networks of bilateral tax treaties.

"Today's signing of the multilateral convention is another major step towards updating the international tax rules through the swift implementation of the BEPS package," said OECD Secretary-General Angel Gurra.

"Beyond saving signatories from the burden of re-negotiating thousands of tax treaties bilaterally, the convention results in more certainty and predictability for businesses, and a better functioning international tax system for the benefit of our citizens."

Question: How this treaty can impact policy of co-ordination between nations?