Ghana Signs OECD Tax Convention

July 11, 2012 International Tax CooperationTaxation in Ghana

Ghana OECD tax convetionACCRA – Ghana has signed a multinational tax agreement, which could help fight cross border tax evasion and raise more funds for development projects in the country.

On June 10th Ghana become the 36th country to sign the OECD’s Convention on Mutual Administrative Assistance in Tax Matters, a multilateral agreement intended to help participating countries eliminate international tax evasion and aids tax authorities to ensure tax compliance.

While speaking at a press conference shortly after the signing of the Convention the deputy Minister of Finance of Ghana Seth Terkper said that “…Ghana appreciates the present cordial relationship with the OECD and will adopt the exchange of information mechanism to reduce tax evasion.” He added that the new Convention could help the country raise extra tax revenues, which will be used to fund further development projects in Ghana.

The Convention provides member countries with administrative assistance and outlines procedures for countries to exchange information regarding tax payers, conduct simultaneous tax examinations and assist each other in recovering and collecting tax payments.

Ghana is the second country in Africa to sign the Convention, after South Africa signed the agreement in November 2011. Commenting on the small number of African countries to participate in the Convention, the Secretary-General of the OECD Angel Gurría said he hopes that Ghana’s signing will “…act as an encouragement to other African countries to also join in this important area of international cooperation.”

Photo by nova3web

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