Senate ratifies 3 treaties to prevent tax cheats-A A +A
Sunday, January 27, 2013
MANILA -- Senators recently adopted resolutions concurring in the ratification of treaties entered into by the Philippine government with the governments of France, Qatar, and Kuwait on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
Adopted on third and final reading were Senate Resolutions 919, 920 and 921 sponsored by Senator Loren Legarda, chairperson of the foreign affairs committee.
Legarda said ratifying the treaties will also result in better technology transfer among the contracting countries due to the broader scope of information exchange.
“Consequently, the role of international cooperation, as carried out through each country’s implementation of international standards of transparency and exchange of information for tax purposes has become more and more critical,” she said.
The Philippines has been blacklisted by France and categorized under the non-cooperative countries and territories (NCCTs) because it has not amended the existing treaty with the former dealing with the provisions on exchange of information.
Legarda said Resolution 919 will amend the existing treaty between the Philippines and France and will allow the exchange of information related to tax administration, including those of bank information.
“The treaties also include articles on non-discrimination, mutual agreement procedure and exchange of information, whereby the contracting states can exchange necessary information, in particular for prevention of fraud or evasion of taxes covered by the treaties,” she said. (Virgil Lopez/Sunnex)