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    Decoding MLI

    Decoding MLI

    MLI has come into effect in India from April 2020. MLI provides solutions to the contracting jurisdictions to plug in lacunas and loopholes in international tax treaties by superimposing the provisions into bilateral tax treaties. 

    MLI allows the contracting jurisdictions to implement agreed minimum standards so that all the countries should find it easy to adopt and amend their bilateral treaties by reserving from applicability of certain articles and choosing the options from set of options, to counter treaty abuse, and to improve dispute resolution mechanisms while providing flexibility to accommodate specific tax treaty policies. 

    In this book, we have made a sincere effort to put in to one place the convention, and the explanatory statement to the convention, appropriately stated, crisply and precisely explained with the help of appropriate illustrations for the understanding of the reader.  

    A proper understanding has been provided in respect of the concepts like reservations, notifications, compatibility clauses, and definitions like Entry into Force and Entry into Effect, without the proper understanding of which, one cannot understand the true essence of MLI. 

    Concepts like the Principal Purpose Test (PPT), Limitation of Benefit (LOB), under Article 7, to prevent abuse of Tax Treaty, and the definition of ‘Qualified Person’, to access the treaty benefits, have been very craftly explained with illustrations, for better understanding of the reader.  The interplay of Article 7 with that of the Domestic Tax provisions viz., GAAR, have also been spelt out lucidly. 

    The abuse strategy of artificial avoidance of PE status of an enterprise by establishing a commissionaire model (Article 12), Specific Contract exemptions, Anti-Fragmentation Rule (Article 13), Splitting-up of Contracts (Article 14), explained in Action 7 Report of BEPS project, which forms part of the very essence of Article 7 of MLI has been brought out appropriately, for the understanding of the reader. 

    The concept of Mutual Agreement procedure under Article 16 of MLI, dealt by Action 14 Report of the BEPS project, has been presented in a tabulated form, for the better understanding of the concept by the reader. 

    India’s standpoint on the Articles of MLI, vis-à-vis, other contracting jurisdiction, have been appropriately stated. This book gives a holistic approach of understanding MLI, and without any further delay, please go ahead and read our book.


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