The International Affairs Committee (IAC) of the National Assembly, Chaired by Hon. Waven William met with a delegation from the Ministry of Finance, Economic Planning and Trade led by the Secretary of State for Finance, Mr. Patrick Payet on Tuesday 19th October 2021. The Chairperson of the IAC was accompanied by the Vice-Chairperson, Hon. Wavel Woodcock and other Members, namely; Hon. Philip Monthy, Hon. Kelly Samynadin, Hon. Wallace Cosgrow and Hon. Philip Arissol.
The purpose of this meeting was to discuss the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). Mr. Payet was accompanied by Ms. Bryna Felix, Senior Policy Analyst and Ms. Elle Cafrine, Policy Analyst at the meeting.
Mr. Payet and Ms. Felix made a presentation to the IAC on the salient features of the Convention, its aims and its importance. They confirmed that ratifying this agreement will greatly assist Seychelles in reducing profit shifting and base erosion which are crucial in improving the socio-economic growth of the country. Ms. Felix also briefed the Committee on the Double Taxation Avoidance Agreements (DTAAs) that Seychelles has signed with 33 other countries and how ratifying the Convention will not only strengthen the agreements against profit shifting and base erosion but modify the DTAAs with other countries that have ratified the instrument to include provisions without lengthy, time consuming and costly processes. In other words, the MLI enables countries and jurisdictions to swiftly modify their bilateral tax treaties to implement some of the measures agreed. The delegation concluded that ratifying the Convention will bring Seychelles in line with OECD and that although there are reservations, it is their wish to have the support of the Committee in the ratification process.
The IAC is of the view that additional support to the Ministry of Finance, Trade and Economic Planning is necessary to enable them to be more proactive and reduce to the bare minimum loss of hard earned wealth with limited economic diversification base. The Committee will submit its Report to the House when the instrument will be presented for ratification soon.
