The International Affairs Committee that is Chaired by Hon. Waven William met with the Department of Finance on Wednesday 16th June 2021 in order to officially review and consider the Southern African Development Community Agreement on Assistance in Tax Matters. Other Members of the Committee present were Hon. Wavel Woodcock, Hon. Egbert Aglae, Hon. Kelly Samynadin, Hon. Wallace Cosgrow, Hon. Philip Monthy and Hon. Philip Arissol.
The Department of Finance was represented by; Mr. Patrick Payet - Secretary of State, Ms. Seylina Verghese - Director General Tax & Financial Sector Policy Division and Ms. Odile Vidot - Director Financial Sector Policy Division.
Hon. Waven William welcomed the representatives from the Department of Finance who were very keen to meet with the Committee and appraise the Members on the Agreement. Mr Payet gave a small introduction on the aim of the instrument, as well as the benefits for Seychelles if it were to be ratified. It was explained that the main objective of it is on taxation information exchange arrangements and assisting Member countries party to the Agreement. In addition, the instrument will also enable State Parties to support each other in tax matters in regard to; the exchange of information in tax matters, the carrying out of tax examinations abroad, the carrying out of simultaneous tax examinations and assisting in the collection of taxes.
Members of the IAC engaged with the representatives from the Department of Finance on certain concerns and ambiguity in the Agreement such as compliance, erosion of tax base profit, the benefits for Seychelles in ratifying the instrument, as well as the impact on the baseline taxation offered by Seychelles and the unfairness of expectations on developing countries with low capacities to respond or comply quickly.
The Secretary of State, Mr Payet mentioned that Seychelles has a good rating with the OECD and that this Agreement will further enhance the country to have a good standing. In addition, it will demonstrate that the Seychelles is keen to uphold domestic laws and aid law enforcement agencies and authorities to carry out their mandate. The need for African countries to unite as a block to negotiate for policy space to adjust progressively was heavily discussed, as well as the need for Small Island Developing States to form alliances to push forward specific concerns and for special treatment consideration.
