IBA Annual Conference Sydney 2017

8 Oct - 13 Oct 2017

Room C4.4, Convention Centre, Level 4

Session information

Multilateral instrument: speed dating tax style - how are you impacted?

Thursday 12 October (0930 - 1230)

Room C4.4, Convention Centre, Level 4


Taxes Committee (Lead)


On 7 June 2017, 68 countries signed the multilateral treaty to implement, among others, the treaty abuse rules (principal purpose test or limitation on benefit provision) and binding arbitration provisions in the framework of the \organisation for Economic Co-operation and Development Base Erosion Profit Sharing Action Plan. The agreement required certain minimum standards be implemented but provided different approaches. Countries could opt out of parts of the agreement with reservations. Hence, most, but not necessarily all, signatories may also have included provisions for transparent entities, restrictions on dividend transfers, expanded ability to tax share sales of real estate companies or new permanent establishment rules. The multilateral treaty allows participating countries to effectively amend their treaties without years of negotiation. The US, Brazil and Saudi Arabia didn't sign the agreement. This landmark agreement will have a significant impact on existing structures and the future of international tax planning. This panel will review the impact of the agreement on holding companies, financing structures, IP structures commissionaire arrangements and supply chain structures. The likely interpretation of the principal purpose test will be considered. The impact of the US not signing will be discussed.

Session / Workshop Chair(s)

Jack Bernstein Aird & Berlis, Toronto, Ontario, Canada
Sonia Velasco Cuatrecasas, Barcelona, Spain


Timothy Becker Tim Becker PC, Boston, Massachusetts, USA
Vivian Chang Ashurst, Sydney, New South Wales, Australia
Pia Dorfmueller Dentons, Frankfurt, Germany
Riccardo Michelutti Facchini Rossi Michelutti, Milan, Italy
John Peterson OECD, Paris, France
Jan van den Tooren Hamelink & Van den Tooren, The Hague, Netherlands