Ghana, The Netherlands reach agreement to avoid double taxation
Ghana and The Netherlands have signed an agreement to improve the implementation of a bilateral tax treaty signed in 2008 to avoid double taxation and fiscal evasion.
The treaty, Double Tax Convention (DTC), is one of the 91 bilateral tax treaties Ghana has signed with The Netherlands and it is to avoid the collection of taxes from businessmen operating between Ghana and The Netherlands in both countries.
The agreement, signed last Tuesday on automatic exchange of information, requires the regular swapping of fiscal information on all tax transactions to avoid and combat the evasion of taxes accruing to each country.
Premise of agreement
Signing on behalf of Ghana, the Commissioner-General of the Ghana Revenue Authority (GRA), Mr George Blankson, said the premise of the agreement included the two countries’ membership of the global forum on transparency and exchange of information for tax purposes (Global Forum), and both countries being signatories to the convention on mutual administrative assistance in tax matters and signatories to the DTC.
The Global Forum is a multilateral framework that has been facilitating the exchange of information by different economies in a transparent manner since 2000.
Mr Blankson said the agreement was to help tax administrators of both countries to automatically provide each other with information, including income from immovable property earned by residents of each country, dividends, interest, directors’ fees and income of artists and sportsmen and women.
He expressed the hope that the agreement would help both countries to fight evasion of taxes, lead the discovery of concealed offshore accounts and assets and improve tax cooperation.
Commitment
Initialling on behalf of The Netherlands, its Ambassador to Ghana, Mr Hans Docter, said the agreement had become necessary because currently, there were many nationals of both countries operating in both Ghana and The Netherlands.
According to him, both countries had also exhibited their commitment to the mobilisation of revenue for national development in several ways, including the institution of tax revenue authorities to handle national and international issues of taxation.
The agreement, he said, would therefore, make it easier for the business people to pay taxes and mobilise revenue for development.
According to him, the agreement, which was the first to be signed with an African country, was expected to be signed with other African countries.
“The Netherlands has signed a similar agreement with 19 other countries, including France in 1996, because it attaches very high importance to combating fiscal fraud, as well as ensuring that taxes are being paid to countries entitled,’’ he added.
Mr Docter said the agreement would boost bilateral trade between both countries for mutual benefits.
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