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INN SEC OMB APPROVAL19010961OMBNumber:Expires:MLI PrOCeSSing32350123August31,2020EstimatedaverageburdenSection ANNUALAUU19 2019AUDITEDREPORThoursperresponse......12.00FORM X17A5Washington DC 413SECFILENUMBERPART
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MLI processing refers to the Multilateral Instrument processing, which is a legal instrument developed by the OECD to prevent BEPS (base erosion and profit shifting) by multinational enterprises. It allows countries to modify their existing tax agreements to implement measures agreed upon in the BEPS project.
Countries that are signatories to the Multilateral Instrument are required to file MLI processing in order to modify their existing tax agreements.
The MLI processing is filled out by countries through a specific ratification process outlined in the treaty. Each country must submit its instrument of ratification or acceptance to the OECD in order to formally adopt the measures outlined in the MLI.
The purpose of MLI processing is to prevent multinational enterprises from avoiding taxes through strategies that exploit gaps and mismatches in tax rules.
The information reported on MLI processing includes the specific modifications made to existing tax agreements, the countries involved in the modification, and the effective date of the changes.
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