The Government of Ghana recently signed a Double Taxation Avoidance agreement (DTA) with the government of Mauritius at Port Louis, Mauritius.
Speaking at a joint press conference after the signing ceremony, Ghana’s Vice President, Alhaji Dr. Bawumia, said “We have seen the manifestation of the first fruits of this Joint Permanent Commission with the signing of the historic double taxation agreement between Ghana and Mauritius, …, and we believe this is just the beginning of our cooperation,”
Required:
Discuss FIVE benefits likely to result from the Double Taxation Agreement. (5 marks)
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- They create an environment of fiscal certainty which encourages trade and investments.
- They protect international shipping and air transport activities.
- They create machinery for administrative co-operation between tax authorities of the contracting states.
- They discourage the more obvious forms of discriminatory taxation of foreign nationals and enterprise.
- They also afford the exchange of information between the relevant tax authorities.
- They also help prevent international tax avoidance and evasion. (Any 5 points)