The OECD has released the third peer review report assessing jurisdictions’ efforts to prevent tax treaty shopping and other forms of treaty abuse under Action 6 of the OECD/G20 BEPS project.

The latest report includes the aggregate results of the peer review and data on tax treaties concluded by each of the 137 jurisdictions that were members of the Inclusive Framework on 30 June 2020. The data compiled for this peer review demonstrates that the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (the MLI) has been the tool used by the vast majority of jurisdictions that have begun implementing the Action 6 minimum standard, and that the MLI has started to impact tax treaties of jurisdictions that have ratified it.

A revised peer review document forming the basis of the assessment of the Action 6 minimum standard was also released and forms the basis on which the peer review process will be undertaken as of 2021.

The consolidated document includes the Terms of Reference which set out the criteria for assessing the implementation of the Action 6 minimum standard, and the Methodology which sets out the procedural mechanism by which the review will be conducted.