Improving multinational tax behaviour

OECD's Multilateral Instrument is a first step whose details need etching

The OECD’s Base Erosion and Profit Shifting (BEPS) project under the auspices of the G20 is for combating abusive transactions relating to multinationals’ (MNE) tax activities to reduce their global tax burdens through hybrid arrangements, transfer pricing and permanent establishments.  Thus there are two sides to this — governments and MNEs — and a tug of war to collect or retain revenue. On June 7, the Multilateral Instrument (MLI) was signed by 67 countries, including India, in Paris. The Indian finance minister appeared in the front row centre of the group of finance ministers. It was a noteworthy moment.  It