68 countries signed tax loopholes agreement. U.S. didn't
The agreement aims to update the existing network of bilateral tax treaties and reduce opportunities for tax avoidance by multinational enterprises.
The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS - base erosion and profit shifting - will also strengthen provisions to resolve treaty disputes, said the Organization for Economic Cooperation and Development (OECD).
The avenues include mandatory binding arbitration, which is hoped to reduce double taxation and increase tax certainty.
The 28 members of the European Union have signed on, including the UK, along with China, Hong Kong, Indonesia, India, Korea, Russia and Singapore.
Eight more countries expressed the intention to sign the convention, bringing the number to 76.
One notable exception: the United States, which is the only major nation to stay away.
The decision is of a piece with other moves by Donald Trump’s administration, including the US withdrawal from the Trans Pacific Partnership agreement and the Paris climate change pact. ■