Aug 22, 2017

Fighting Tax Evasion & Avoidance | Theophilus Olufemi

The Federal Inland Revenue Service (FIRS) has again taken a step towards containing tax avoidance and evasion in Nigeria. The agency signed two major multilateral agreements to join 71 other countries to fight tax evasion.

On behalf of the FIRS, Mr. Tunde Fowler has signed a multilateral convention to implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting and the Common Reporting Standard Multilateral Competent Authority Agreement. This agreement was signed in Paris with the Head Global Relations and Development Division of the organisation for Economic Cooperation and Development.

These agreements would avail the FIRS with the “automatic exchange of tax and financial information among 101 tax jurisdictions and enhance the ability of countries to contain tax avoidance and evasion.”
It will also help the countries to share financial data.
The MLI is a legal instrument designed to prevent Base Erosion and Profit Shifting by multinational enterprises.

It allows jurisdictions to transpose results from the OECD/G20 BEPS project, including minimum standards to implement in tax treaties to prevent treaty abuse and “treaty shopping”, into their existing networks of bilateral tax treaties in a quick and efficient manner.

The CRS MCAA is a multilateral competent authority agreement based on Article 6 of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which aims to implement the automatic exchange of financial account information pursuant to the OECD/G20 Common Reporting Standard and to deliver the automatic exchange of CRS information between 101 jurisdictions by 2018.

Senior Tax Advisor at TAC Professional Services

Ed’s Note – This article was first published here

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