Assented to 2019-06-21
An Act to implement a multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting
This enactment implements a multilateral instrument in respect of conventions for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The multilateral instrument is an international treaty developed as part of the G20 and OECD’s project to tackle base erosion and profit shifting (BEPS). The purpose of the multilateral instrument is to modify, in their application, tax conventions between two or more parties to the multilateral instrument so as to further the objectives of the tax convention. The multilateral instrument operates alongside tax conventions to modify them in their application; it does not directly modify the text of the tax conventions. The multilateral instrument will apply to a Canadian bilateral double tax convention only if both parties to the convention notify the depositary that the convention is intended to be covered by the multilateral instrument. The Secretary-General of the OECD is the depositary of the multilateral instrument. The implementation of the multilateral instrument requires the enactment of this Act.
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Marginal note:Short title
1 This Act may be cited as the Multilateral Instrument in Respect of Tax Conventions Act.
Marginal note:Definition of multilateral instrument
2 In this Act, multilateral instrument means the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting set out in the schedule.
Marginal note:Multilateral instrument approved
3 The multilateral instrument is approved and has the force of law in Canada during the period that the multilateral instrument, by its terms, is in force for Canada.
Marginal note:Inconsistent laws — general rule
4 (1) Subject to subsection (2), in the event of any inconsistency between the provisions of this Act or the multilateral instrument and the provisions of any other law, the provisions of this Act and the multilateral instrument prevail to the extent of the inconsistency.
Marginal note:Inconsistent laws — exception
(2) In the event of any inconsistency between the provisions of the multilateral instrument and the provisions of the Income Tax Conventions Interpretation Act, the provisions of that Act prevail to the extent of the inconsistency.
5 The Minister of National Revenue may make any regulations that are necessary for carrying out the multilateral instrument or for giving effect to any of its provisions.
(a) on or before the 60th day following the day on which the multilateral instrument enters into force for Canada, a notice of the day on which the multilateral instrument so entered into force; and
(b) on or before the 60th day following the day on which Canada withdraws from the multilateral instrument, a notice of withdrawal and the date on which it takes effect.
- Date modified: