The Government of Canada is working to improve the tax system for all Canadians by ensuring that everyone pays their fair share. Taking action against tax loopholes is a way to instill confidence in Canada’s tax system and drive economic growth for the middle class.

The Parliamentary Secretary to the Minister of Finance, Ginette Petitpas Taylor, joined representatives from a large number of other jurisdictions today in signing the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.

The Multilateral Convention will modify many of Canada’s current tax treaties in order to implement the tax treaty-related measures developed by the joint Organisation for Economic Co-operation and Development (OECD) and G20 project to counter base erosion and profit shifting (BEPS).

This is the culmination of several years of collaborative work by OECD and G20 countries to combat international tax avoidance.

BEPS refers to aggressive tax planning arrangements undertaken by multinational enterprises which, though legal, exploit the interaction between domestic and international tax rules to inappropriately reduce their taxes. For example, some enterprises will shift their taxable profits away from the jurisdiction where the underlying economic activity has taken place in order to avoid paying their fair share.

The signature of the Multilateral Convention supports the Government of Canada’s commitment in Budgets 2016 and 2017 to enhance tax fairness and combat international tax avoidance. It is also consistent with commitments made by Canada and other OECD and G20 members to implement tax treaty-related BEPS measures, recognizing that widespread and consistent implementation of these measures is critical to the effectiveness of the BEPS project.

The Parliamentary Secretary will conclude her trip tomorrow by attending the OECD Ministerial Council Meeting.