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Canada: Multilateral instrument (MLI) is ratified

Canada: Multilateral instrument (MLI) is ratified

Canada’s Department of Finance today issued a release announcing that Canada has deposited its instrument of ratification with the depositary of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the multilateral instrument or “MLI”).


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The MLI is a multilateral convention that will implement a number of tax treaty measures designed to reduce opportunities for tax avoidance by multinational enterprises. Canada became a signatory to the MLI on 7 June 2017.

As noted in today’s Finance release, the MLI will apply to certain of Canada's tax treaties—specifically, a tax treaty will be covered by the MLI if each of the parties to the treaty have listed that treaty for purposes of the MLI and have brought the MLI into force.

  • The MLI will enter into force for Canada on 1 December 2019 and will enter into effect for any particular covered tax treaty in accordance with the provisions of Article 35 of the MLI.
  • The MLI will apply to some of Canada's tax treaties with effect as early as 1 January 2020. 

Read an August 2019 report [PDF 198 KB] prepared by the KPMG member firm in Canada

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