Title: Burkina Faso denounces the double tax treaty with France: what are the issues?
Introduction :
Burkina Faso recently denounced the double tax treaty with France, signed in 1965. This decision comes after a series of tense political and financial events between the two countries. In this article, we will examine the reasons for this denunciation, the potential consequences for the two countries and the issues that are emerging.
Denunciation of the tax treaty:
The Burkinabè government justified its decision to denounce the tax treaty by pointing out that it did not sufficiently protect the interests of Burkina Faso and resulted in financial losses for the country. Experts had already called for a review of this agreement since 2019, and requests for renegotiation had been made since January 2020. Faced with the absence of responses from France, Burkina Faso had no other choice but to terminate this agreement.
Consequences for both countries:
The denunciation of this tax treaty will have significant consequences for economic relations between Burkina Faso and France. By terminating this agreement, Burkina Faso will now be able to impose its own tax rules on French companies operating on its territory. This could lead to an increase in tax burdens for these companies and impact their profitability.
On the French side, the suspension of development aid and budget support following Burkina Faso’s support for the military coup in Niger has already created political and financial tensions. The denunciation of the tax treaty in this context has amplified these tensions and could further compromise relations between the two countries.
Issues for the future:
The denunciation of the tax treaty between Burkina Faso and France highlights the underlying issues of economic relations between African countries and the former colonial powers. He stresses the need for African countries to review their fiscal agreements with foreign powers in order to better protect their economic interests.
This decision by Burkina Faso could also encourage other African countries to review their own tax treaties with France and other European countries. This could lead to a global reassessment of economic relations between Africa and Europe and a search for more tax justice and better conditions for African countries.
Conclusion :
The denunciation of the double taxation treaty between Burkina Faso and France marks a turning point in economic relations between the two countries. Decision raises questions about tax fairness and economic interests of African countries. It could also have repercussions on other tax agreements between Africa and Europe. It is essential to follow closely the development of these events and the consequences that will ensue for international relations and the economic development of each country