Senegal becomes the 11th African country to sign the convention of administrative assistance in tax matters
Senegal becomes the 11th African country to sign the convention of administrative assistance in tax matters, showing its commitment to guaranteeing its future in the global market place.
This convention was initially created by the council of Europe and the OECD (Organization for Economic cooperation and development) in 1988, however in 2010 is was further updated to bring it in line with international rules adhered to by the G20. This safeguarded that the future of the convention was guaranteed by ensuring that developing countries could also profit from the clear, unambiguous and distinct tax rules and conditions that it provides.
OECD – Organization for Economic cooperation and development
Prior to growing into the “Organization for Economic cooperation and development”, the OECD began life as the OEEC, “Organization for European Economic Cooperation”. It was originally created at the end of the Second World War in 1948 and was designed to be a tool by which Europe could share best practices, lessons learnt and other economic problems in order to encourage uniformity and fiscal growth.
In 1961 the OEEC evolved into the OECD with the intention of invigorating worldwide trade and global economic development. The OECD is based in Paris, France and is currently made up of 34 countries all of whom are committed to democracy and economic development. In the past it has been accused of being “narrow-minded” as its members are restricted to a collection of wealthy countries.
African signatories of the convention
On the 4th February 2016, Senegal became the 11th African country to sign the convention, joining; Cameroon, Gabon, Ghana, Morocco, Nigeria, Senegal, Tunisia, Uganda, South Africa and the Seychelles.
On the 8th February 2016, Kenya became the 12th African country to sign the convention.
A powerful tool
The convention ensures taxpayers’ rights and protects them from illegal or unfair tax legislations. It provides a number of different administrative techniques in order for a country to better control its tax collection procedures as well as ensure superior visibility and exchange of information. This in turn ensures illicit financial flows are prohibited.
By signing the convention, a country clearly indicates that is has a desire to fight tax avoidance and/or evasion, and in doing so significantly improves its economic future and its place in the global business market.