How the OECD’s Multilateral Instrument Will Affect The Nigeria-Spain Tax Treaty
On June 7, 2017, an important event happened in tax treaty history. Ministers and high-level officials from 76 countries agreed or formally signified an intention to sign a multilateral instrument, which modifies some existing bilateral tax treaties in the world today. The OECD’s Multilateral Convention to implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (known as the multilateral instrument, or MLI) is one of the most significant contributions to improving the international tax system in tax treaty history. The MLI becomes effective within three months after five jurisdictions deposit an instrument of ratification with the OECD. The MLI will become effective on July 1, 2018 since Slovenia deposited the fifth instrument of ratification on March 22, 2018.
The MLI implements measures that strengthen existing tax treaties to protect governments against tax avoidance schemes that misuse treaties to shift profits to low- or no-tax locations.1 Before the MLI, jurisdictions entered into bilateral tax agreements to avoid the double taxation of their residents. These agreements often took years to complete and bring into force. With the MLI, more than 1,100 bilateral tax treaties will be swiftly revised to close the gaps that enable tax avoidance. One of these tax treaties is that between Nigeria and Spain. Read the full article published by Tax Analysts to see how the MLI modifies the Nigeria and Spain tax treaty.
Modupe O. OTOIDE is an International Tax Consultant and licensed attorney in the State of New York and Nigeria. She has a graduate degree in International Taxation from the New York University (NYU) School of Law. With her vast knowledge of regulatory and tax law, she has worked assiduously to structure commercial and corporate transactions to ensure profitability of business enterprises in various sectors of the Nigerian economy and the US. She currently works with a Fortune 500 company where she researches, develops, and executes international tax planning strategies for taxable and tax-free mergers and acquisitions, divestitures, corporate restructuring, and cross border financing.
She researches and writes on the global economy and how changing tax rules affect competitiveness and profitability of businesses.
In her spare time she loves travelling and exploring different cultures of the world.
You can follow her on the following social media platforms.
LinkedIn: Modupe O. OTOIDE