Spectator on facebook

Spectator on facebook

Over 60 countries including Slovakia team up to fight tax avoidance

The signed convention is intended to halt the practice of routing income to countries with attractive tax treaties via shell companies.

(Source: Reuters)

The international fight against tax avoidance has reached another milestone. On June 7, in Paris, finance ministers and other representatives in charge of more than 60 countries signed a multilateral convention that aims to check cross-border tax evasion. The ceremonial signing was part of the OECD Ministerial Council meeting, in which ministers from the OECD and partner countries discussed issues of global relevance.

Slovak Finance Minister Peter Kažimír signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS [base erosion and profit shifting] for Slovakia.

“Tax avoidance is, alas, a reality,” said Kažimír as cited by the TASR newswire. “I appreciate all the more the fact that we’re involved in bringing countries closer together and in bringing the spotlight on those who try to avoid the rules.”

As a result of the convention, over 1,100 treaties concerning the prevention of double taxation will be modified.

The convention, which is part of the OECD/G20 BEPS Project, seeks to close the gaps in existing international rules that allow corporate profits to “disappear” or be artificially shifted to low or no tax jurisdictions, where companies have little or no economic activity. This ultimately results in corporate income tax avoidance.

The convention will become definitively effective after at least five signatory countries approve it at the national level. Afterwards it will be reflected in bilateral contractual obligations of signatory countries. Slovakia has chosen all its 64 valid and effective treaties on double taxation for adjustment via the multilateral convention.

Topic: Finances and Advisory


Top stories

How did Communism happen in Czechoslovakia?

For the 40 years, Czechs and Slovaks would celebrate February 25 as Victorious February, even though the enthusiasm of most of those who supported Communists in 1948 would very quickly evaporate.

Prime Minister Klement Gottwald (right) swears an oath into the hands of President Edvard Benes on February 27, 1948 at the Prague Castle.

Cemetery with a remarkable creative concept Photo

The shapes of tombstones were prescribed until 1997

Vrakuňa Cemetery in Bratislava

Being young is harder than it used to be

The failure of older generations to sympathise with youth means politics are primarily a contest of who can hand out more gifts to old people.

Young Slovaks have problems finding proper jobs.

Historian: After 1948, Czechoslovakia was paralysed with fear

On February 25, Czechs and Slovaks mark 70 years since the rise of Communism in their common state. Historian Jan Pešek talks about the coup and its aftermath.

Demonstration in Prague, Wenceslas' Square, on February 28, 1948.