Based on the strategic partnership between the UAE and the Organisation for Economic Cooperation and Development (OECD) and in line with the extension of the Memorandum of Understanding (MoU) signed between the two parties on international tax treaties in the third period between 2013 and 2015; the Ministry of Finance (MoF) recently organised a workshop on international tax avoidance and ways to maximise the use of tax treaties in the Emirate of Ajman.
The workshop saw representatives from various countries in the Middle East and North Africa (MENA) participate. The economic, land and property and free zones departments of the Ministry of Foreign Affairs, in addition to representatives from Etihad Airways and TAQA attended the workshop on behalf of the UAE.
The main goal behind this workshop was to provide countries in the MENA regions with the technical support required in regards to tax agreements and international tax as well as to stay informed about the latest developments in tax policy and the best tax practices.
Commenting on the workshop, HE Khalid Ali Al Bustani, Assistant Undersecretary of International Financial Relations Sector at MoF, said: “This workshop reflects the Ministry’s commitment to ensure best practices in various areas of government financial work, including tax, are being applied at all times. MoF continuously strives to obtain strategic partnerships with various international institutions and organisations, which supports the Ministry’s desire to play an active role in the UAE’s development and progress, at a regional and global level.”
HE added: “MoF will continue to strengthen the UAE’s position in terms of tax cooperation by working alongside OECD in order to enhance the region’s ability to obtain the benefits of international tax treaties linked to it.”
This workshop covered a range of topics including the practices used by some individuals and institutions in regards to cross- border tax evasion, how to benefit from tax agreements in order to reduce the use of these practices and prosecution, reviewing the actions taken by the governments of both countries in terms of their own local law, taxation agreements and the administrative systems used to control tax evasion, as well as a review of cases of improper use of tax agreements.
G20 entrusted OECD with the task of finding a way to transfer benefits and develop possible solutions in order to promote investment, which is reflected by its commitment to enhance cooperation and understanding through regional dialogue and the proper application of the principles of international taxation and tax treaties.