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Algeria has just strengthened its legal arsenal to combat international tax fraud and evasion, through the signing of a multilateral convention for the implementation of measures relating to tax conventions to prevent the erosion of the tax base. taxation and profit transfer “BEPS Multilateral Instrument”.
This was indicated by the Ministry of Finance in a press release, indicating that this agreement was signed by the Minister of Finance, Laaziz Faid, at the headquarters of the Organization for Economic Cooperation and Development (OECD), in Paris. , in the presence of the Deputy Secretary General of the OECD, Fabrizia Lapecorella and the Director General of Taxes, Amel Abdellatif.
The aim of this convention is “to effectively combat international tax evasion practices, implemented in particular by multinational companies through the inappropriate use of tax treaties,” the ministry said.
It applies, “in parallel, to the bilateral tax conventions concluded by Algeria, by modifying their implementation in order to insert certain measures, aimed at preventing the erosion of the tax base and the transfer of profits, without having to go through long and costly procedures of bilateral negotiations”, it was added.
The ministry also reported that this multilateral convention was signed by 32 countries with which Algeria has concluded a bilateral tax convention.
This multilateral convention will allow “our country to strengthen its legal arsenal to combat international tax fraud and evasion, by providing the tax administration with additional legal means enabling it to deal more effectively with certain tax avoidance practices damaging to State resources and its sustainable development.”
On the other hand, the signing of this agreement also marks “Algeria’s commitment to improving its business climate, to the extent that it will contribute to strengthening the legal security granted to investors in particular and taxpayers in general, in particular through the strengthening of mechanisms for settling international tax disputes,” stressed the Ministry of Finance.