Ratification of OECD’s Multilateral Convention to Check Tax Evasion

• On 12^th June, 2019, Cabinet approved the ratification of a multilateral convention to implement OECD’s project on checking tax evasion.
• The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) was signed by India in Paris in 2017.

Impact

• It will modify India’s treaties in order to curb revenue loss through treaty abuse and base erosion and profit shifting strategies by ensuring that profits are taxed where substantive economic activities generating the profits are carried out and where value is created.