[5] Canada, Department of Finance, «Canada Ratifis the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting» (August 29, 2019): online: Department of Finance . The main treaty changes to be implemented under the MLI are the inclusion of a comprehensive anti-avoidance rule in secure tax treaties, called primary object review or TPP. Under the TPP, a contractual benefit may be denied if it is found that one of the main purposes of an agreement or transaction was to obtain that benefit, unless it is established that the granting of the benefit is consistent with the purpose and objectives of the relevant provisions of the contract. Other minimum standards to be implemented through the IMI include (i) an amended preamble stating that secure tax treaties aim to eliminate double taxation without creating opportunities for non-taxation or reduction of evasion or evasion taxation, and (ii) amended dispute resolution procedures, including the adoption of mandatory arbitrations. These minimum standards are described in more detail in Osler`s updates «Canada signs the multilateral tax treaty» and the «New TPP Rule in the OECD Multilateral Instrument for the Ouster of Canadian GAAR?» The MLI applies to Canadian tax treaties that are covered by the MLI. A tax treaty is covered by the MMA if each party has listed this contract for the purposes of the MMA and has implemented the LML. Some provisions of the MLI are mandatory, while others are optional. The mandatory provisions include certain preamble languages, as well as provisions relating to the prevention of contractual abuses and the mutual agreement procedure («MAP»). The preamble consists of a declaration against the creation of non-taxation and reduced taxation opportunities, including contractual purchasing schemes, and will apply to all contracts in which there is, for the most part, a similar language. The MLI will enter into force for Canada on December 1, 2019 and will come into force for any specific tax treaty covered, in accordance with Section 35 of the ACCORD. The MLI will apply to some of Canada`s tax treaties effective January 1, 2020.

[11] Canada, Department of Finance, Backgrounder: The Next Step in the Fight Against Aggressive International Tax Avoidance (May 28, 2018): online: <Department of Finance . Taxpayers can refer disputes by mutual agreement that have not been resolved to independent and binding arbitration if they meet different criteria. The MLI does not change Canada`s bilateral tax treaties. Instead, the MLI changes the effect and interpretation of the preamble and certain provisions in the treaties that «cover» Canada on a contractual basis (i.e., subject to the MLI). In signing the MLI, Canada indicated that 75 of the 94 bilateral tax treaties («secure tax treaties») could be covered and amended by the MLI, although Canada indicated that bilateral agreements with some other countries could be covered at a later date.

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