The MLC will be marked on June 7, 2017 by more than 100 nations wherein the countries will notify the tax treaties that they intend to be covered by the MLC. The MLC will be relevant on correspondence premise implying that two nations need to advise each other for the MLC to be pertinent. The MLC seeks to swiftly implement the BEPS actions by way of superimposing the provisions of the MLC on the covered tax treaties. In other words, once a tax treaty is covered by the MLC, the treaty will stand automatically amended in line with the relevant provisions of the MLC.
Rakesh Nangia, Managing Partner and Rahul Jain, Partner, Nangia and Co LLP contributed an article on “Addressing charge bargain manhandle” for Hindu business Line.
In this article they discussed the General Anti Avoidance Rule (GAAR) and the looming marking of the Multilateral Convention which will incorporate Action 6 (Prevention of Treaty Abuse) of the BEPS venture and how the two would be applicable over one other. In particular, the article examined whether even after the Multilateral Convention, India can in any case apply GAAR despite the fact that the counter manhandle arrangements have been consolidated in the Treaties as a result of the Multilateral Convention.