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Mauritius signs the OECD’s multilateral convention

Mauritius’s ministry of finance and economic development has signed the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting (BEPS), also referred to as the multilateral instrument (MLI).

The MLI is a legal tool which is designed to prevent BEPS as well as enabling jurisdictions in transposing the minimum standards of OECD/G20 Project into their current networks of bilateral tax treaties quickly and efficiently. This will allow them to implement these standards into their tax treaties to deter treaty abuse and ‘treaty shopping’.

BEPS refers to tax avoidance strategies which artificially move profits into low or no-tax locations by exploiting the gaps and mismatches in tax rules.

A list of 69 jurisdictions who participate in the MLI and the position of each Party and Signatory under the Convention are available here.

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