Ankara, Brussels reinforce ties against double taxation

ANKARA - Anadolu Agency

Turkish Minister Şimşek speaks with Belgian Deputy PM Reynders (R). AA photo

Turkey and Belgium inked a protocol that expands the scope of their cooperation in avoiding double taxation by enabling information exchange in line with OECD standards.

The protocol, which changes a previous agreement between Ankara and Brussels, was signed July 9 during Turkish Finance Minister Mehmet Şimşek’s ongoing Belgium visit. The existing agreement encompasses information exchange about only some fields of taxes, but the range is expanded with the new protocol.

Joining forces against common enemy

The protocol will lift the obstacles to the efficient implementation of measures against bank secrecy as well as tax competition. Both countries will benefit from reduced tax evasion and losses in the end.

Bank secrecy and tax evasion reached the top of the agenda of European governments in April after a vast trove of emails and leaked records from offshore tax havens exposed the identities of thousands of account holders. Several fraud cases in France also prompted the urgency of the issue.

For Turkey avoiding tax evasion is a top priority, to ensure transparency and minimize the income losses, which is crucial to easing the chronic current account deficit.