Representatives from 68 jurisdictions signed the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting (BEPS), otherwise known as the multilateral instrument, on 7 June. The convention is part of the OECD’s wider work on tackling tax avoidance strategies that shift profits to low-tax jurisdictions. It will enable over a thousand double tax treaties to be interpreted in a way that implements the OECD’s recommendations relating to hybrid mismatches, treaty abuse, artificial avoidance of permanent establishments and improving dispute resolution.

The signatories included the UK and almost all EU countries, except Estonia, as well as Russia, China, India, Switzerland and Singapore. The US was a notable omission. Eight other jurisdictions have expressed their intention to sign in the future, including Estonia, Mauritius and Nigeria.