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October 3, 2018
2018-1952

Australia deposits instrument of ratification with OECD to modify bilateral tax treaties under MLI

On 26 September 2018, Australia deposited its instrument of ratification for the OECD1 Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS2 (MLI) following enactment of Australia's MLI Act on 24 August 2018.3 This means that the Australia MLI will enter into force on 1 January 2019. Treasury has released Australia's final adoption provisions under the MLI which include 4 mandatory and 20 optional articles for modifying bilateral treaties.

As Australia's covered tax treaty (CTA) jurisdictions, tax treaties with France, Italy, Japan, New Zealand, Poland, the Slovak Republic, and United Kingdom will be initially modified. The extent to which the Multilateral Instrument will modify Australia's bilateral tax treaties will depend on the final adoption positions taken by other countries. Details regarding the MLI can be accessed on the Australian Taxation Office website.

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ENDNOTES

1 Organisation for Economic Co-operation and Development.

2 Base Erosion and Profit Shifting.

3 See EY Global Tax Alert, Australia's law to adopt Multilateral Instrument receives Royal Assent, dated 5 September 2018.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Australia), Sydney

  • Sean Monahan
    sean.monahan@au.ey.com

Ernst & Young (Australia), Perth

  • Andrew Nelson
    andrew.nelson@au.ey.com

Ernst & Young LLP, Australian Tax Desk, New York

  • David Burns
    david.burns1@ey.com

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ATTACHMENT

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