Cameroon is the 70th jurisdiction to join the multilateral BEPS Convention which tackle tax avoidance by multinational enterprises.
Cameroon’s Minister of Finance, Alamine Ousmane Mey, on July 11 in Paris, signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI) in the presence of Pascal Saint-Amans, Director of the OECD Centre for Tax for Tax Policy and Administration.
Cameroon’s participation to the MLI is moving the world closer to the goal of preventing base erosion and profit shifting (BEPS) by multinational enterprises. BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. BEPS is of major significance for developing countries due to their heavy reliance on corporate income tax, particularly from multinational enterprises, and withholding taxes.
Together with 69 other jurisdictions, Cameroon is moving towards rapid implementation of the far-reaching reforms agreed under the BEPS Project in more than 1 100 tax treaties worldwide, and radically transforming the way that tax treaties are modified. Beyond saving Cameroon from the burden of re-negotiating these treaties bilaterally, the MLI will result in more certainty and predictability for businesses, and a better functioning international tax system for the benefit of our citizens.
The MLI is a legal instrument designed to prevent base erosion and profit shifting (BEPS) by multinational enterprises. BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. The MLI 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. It was developed through inclusive negotiations involving more than 100 countries and jurisdictions, under a mandate delivered by G20 Finance Ministers and Central Bank Governors at their February 2015 meeting.
The OECD is the depositary of the MLI and is supporting governments in the process of signature, ratification and implementation. The 70 jurisdictions participating in the MLI and the position of each Party and Signatory under the Convention are available on the OECD website.