WELLINGTON, Nov. 28 (Xinhua) -- The New Zealand government on Monday welcomed the release of a new multilateral instrument to help stop tax avoidance by multinational firms.
The OECD (Organization for Economic Co-operation and Development) instrument was the latest step in the global fight against base erosion and profit shifting (BEPS) by multinationals, said Revenue Minister Michael Woodhouse.
"Many BEPS techniques rely on abuse of tax treaties, and the OECD/G20 BEPS Project has recommended a number of changes to further strengthen tax treaties multilaterally," Woodhouse said in a statement.
"The OECD have proposed a multilateral instrument that will rapidly amend a worldwide network of several thousand bilateral tax treaties, rather than countries having to implement these amendments on a treaty-by-treaty basis."
The instrument text was the result of work undertaken by the OECD and around 100 countries over the past year.
"New Zealand officials have been working with other countries and the OECD to develop this unique instrument, which will enable New Zealand to quickly and efficiently strengthen our tax treaties against BEPS techniques," said Woodhouse.
"BEPS is a global problem that this government is committed to addressing. The best way to do that is through a co-ordinated global response, which is why we are fully committed to the multilateral instrument."
Officials would begin consultation on the implementation of the multilateral instrument, with the signing expected to take place in June 2017. Enditem
