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Inland Revenue

Tax Policy

Terms and abbreviations

Term Description
Competent authority (CA) Person authorised by a double tax agreement (DTA) to administer tax treaty provisions and resolve disputes.
Compatibility clauses Implementation clauses that explain how CTAs are modified by operative clauses.
Covered tax agreement (CTA) A DTA that both parties have chosen to be modified by the MLI.
Double tax agreement (DTA) A bilateral tax treaty.
Explanatory statement Commentary accompanying the MLI to explain the operation of the instrument. It does not address substantive issues – these are covered by the relevant OECD Action Report.
MAP Mutual Agreement Procedure.
Minimum standards BEPS Action Plan recommendations countries are expected to adopt (for example, the DTA preamble).
Multilateral instrument (MLI) The OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.
Notifications Each jurisdiction must provide a list of CTAs, options chosen, reservations and articles of CTAs modified by the MLI to the OECD Depository.
OECD Organisation for Economic Cooperation and Development.
Operative clauses Clauses that implement substantive changes to treaties as per the Action Plan recommendations.
Options Some Action Plan items allow countries choices (for example, methods to relieve double taxation).
Reservations Countries are permitted to reserve on non-minimum standard clauses.