Abuja – The Federal Executive Council (FEC) has approved the Multi-lateral Competent Authority Agreement on Exchange of Country by Country Report to check tax evasion by multinational companies operating in the country.
The Minister of Information and Culture, Alhaji Lai Mohammed, made this known in Abuja on Wednesday, while briefing State House correspondents on the outcome of the FEC meeting, which was presided over by President Muhammadu Buhari.
He stated that the implementation of the report will give government a better grip on its tax laws.
He said the movement of profits by multinational companies would be effectively monitored by relevant agencies of government once the report is implemented.
“In respect of the first memo, which is the memo for Multilateral Competent Agreement and the exchange of country by country report, the whole essence is to give the government a better grip on its tax laws and also to prevent tax evasions and avoidance by multinational
“Where multinational companies operate in more than one country, it is quite easy for them to move profit from one territory to another territory, where the tax laws are very favourable to them.
“And what has happened over the years is that the revenue companies have lost a lot of money.
“As at the last count, over 1trillion dollars have been lost over a period of time and the revenue companies found out that they were losing more money in terms of tax evasion and avoidance than what they were even receiving in terms of grants from multinational agencies,’’ he said.
The minister also disclosed that the council approved an outline Business Case for Development of Greenfield Port Facilities in Badagry, Lagos state.
According to him, the approval is the first step towards the establishment of a new seaport in the Badagry area.
“What is important to us in the approval is that it shows that despite all the challenges that Nigeria is facing, Nigeria is still a very preferred investment destination, ’’ he said.
Addressing the correspondents on the recently inaugurated Abuja-Kaduna commercial rail line, the Minister of Transportation, Mr Rotimi Ameachi, dismissed reports that the fares that would be charged on the Abuja-Kaduna route would be on the high said.