The military junta in Burkina Faso has taken a resolute step by formally abolishing the longstanding double taxation tax treaty that the country had with France since February 15, 1967, according to reports from the country.
The Double Taxation Tax Convention was originally signed on August 11, 1965, and implemented on February 15, 1967, between Burkina Faso and France, along with its supplementary agreement endorsed on June 3, 1971, and put into effect on October 1, 1974.
The agreement guaranteed that any French multinational or company operating in Burkina would pay its taxes in France and not in Burkina Faso. After 56 years, Burkina has ended it, obliging any French multinationals in Burkina to pay its taxes to Burkina or leave.
The military government said such treaty no longer aligned with Burkina Faso’s interests. The termination was communicated through diplomatic channels, with reports saying that the denouncement is set to take effect within a three-month time frame.
The government claimed that, in spite of its repeated appeals for renegotiation, due to inadequacies in the existing agreement, Paris remained unresponsive.
The decision to terminate the tax treaty reflects Burkina Faso’s determination to end years of unfair and unfavourable bilateral agreements that have deprived the country of much needed resources for its development. The government said it will defend its interests and seek a more equitable arrangement in its bilateral relationship with France.
The decision by Burkina Faso comes against the backdrop of growing opposition to what many describe as French hegemonic control over its former colonies. Mali, Burkina Faso and now Niger are reportedly beginning to cut ties with France and demanding bilateral arrangements that eradicate privileges enjoyed by France at the expense of the social and economic development of the former colonies.
