EXECUTIVE Chairman of Federal Inland Revenue Service, FIRS, Mr. Tunde Fowler, has signed two major multilateral instruments – Multilateral Convention to Implement Tax Treaty Related Measures to prevent Base Erosion and Profit Shifting, MLI, and the Common Reporting Standard Multilateral Competent Authority Agreement (CRS MCAA).
Fowler signed the agreements on behalf of Nigeria in Paris, with Mr. Ben Dickinson, Head of Global Relations and Development Division of the Organisation for Economic Cooperation and Development (OECD), in attendance. A statement issued by Pascal Saint-Amans, Director, OECD’s Centre for Tax Policy and Administration (CTPA), said the agreements has made Nigeria the 71st jurisdiction to sign the MLI and the 94th jurisdiction to join the CRS MCAA.
According to him, the agreements would give Nigeria automatic exchange of tax and financial information among 101 tax jurisdictions and enhance the country’s ability and those of the other countries to contain tax avoidance and evasion as well as share financial data.
The MLI is a legal instrument designed to prevent Base Erosion and Profit Shifting (BEPS) by multinational enterprises. It allows jurisdictions to transpose results from the OECD/G20 BEPS Project, including minimum standards to implement in tax treaties to prevent treaty abuse and “treaty shopping”, into their existing networks of bilateral tax treaties in a quick and efficient manner.