The Multilateral Instrument (MLI) and Transfer Pricing Articles
Overview
published in
- Intertax Journal
publication date
- October 2021
start page
- 803
end page
- 817
issue
- 10
volume
- 49
full text
International Standard Serial Number (ISSN)
- 0165-2826
Electronic International Standard Serial Number (EISSN)
- 1875-8347
abstract
-
The Multilateral Instrument (MLI) has a relevant impact on tax treaty measures concerning transfer pricing and the arm"s length principle (ALP). This article examines the incidence of five MLI provisions on transfer pricing that pose significantly interrelated issues, specifically, the
saving clause of Article 11(1), the preamble enclosed in Article 6(1) expressing the will to eliminate double taxation without creating opportunities for reduced taxation through tax evasion or avoidance enshrined in the principal purpose test of Article 7(1), the corresponding adjustment provision of Article 17(1), and the mutual agreement provisions envisaged in Article 16
Classification
subjects
- Law
keywords
- mli, multilateral instrument, tax treaties, transfer pricing, arm’s length principle, abuse, corresponding adjustments, map