Audio By Carbonatix
The African Tax Administration Forum (ATAF) is preparing a treaty for the exchange of tax information among African countries in a bid to combat tax evasion and avoidance.
Executive Secretary of the Forum, Logan Wort, says the Agreement would serve as a legal instrument to ease tax cooperation on the continent, especially on matters involving multinational companies.
It modeled after the OECD’s Tax Information Exchange Agreements (TIEAs).
“We hope by next year to have African countries sign up on a multilateral exchange of information agreement that will allow them to share tax payer information with each other”, he said.
The lack of transparency and effective exchange of information is one of the key criteria in determining harmful tax practices, which involves shifting profit through inter-group transactions.
Earlier this year, ActionAid International issued a report claiming a South African multinational company was dodging tax in five African countries.
According to Wort, countries named in the report could not discuss the issue because of the non-availability of an agreement to share information.
There have been a lot of ongoing reforms in tax administration across Africa over the past ten years, including the formation of single revenue authorities.
The Ghana Revenue Authority (GRA), for instance, has the Internal Revenue Service (IRS), the Value Added Tax (VAT) Service and the Customs Excise and Preventive Service (CEPS) under its administration.
This, according to Logan Wort, has allowed the revenue authorities to be innovative in tax collection and actively engage the citizenry on revenue mobilization.
“Part of what drives the work of the African revenue authorities is to increase the amount of revenue that it is able to collect from the domestic economy through building administrative efficiencies… increasing compliance drive and improving its communication outreach and education” he stated.
Africa draws a lot of its income from customs and excise taxes as a means to compensate for the loss of trade revenue.
Wort observed that property taxation is a trend to watch out for in the coming years.
The ATAF is a platform to promote and facilitate mutual cooperation among African Tax Administrations and other relevant and interested stakeholders with the aim of improving the efficiency of their tax legislation and administration.
The Forum is developing mechanisms for experience sharing and strengthening skills and human capital in tax administration to increase domestic tax revenue for economic development.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
A source of excellence across generations – Vice President Opoku-Agyemang lauds Mfantsipim
24 minutes -
(Photos) Mfantsipim School launches historic 150th anniversary
47 minutes -
Knights and Ladies of Marshall group backs Catholic Bishops’ stance on anti-LGBTQ+
2 hours -
Bright Simons writes: All the Filla in the Ibrahim Mahama/E&P – Gold Fields Saga
2 hours -
Monetise Idiocy In Ghana
2 hours -
The Ghanaian prophet and the mysterious death of his scottish wife Charmain Speirs
3 hours -
Nearly 400 sentenced in Nigeria for links to militant Islamists
3 hours -
Ghana’s recovery supported by gold strength despite global oil price pressures – Standard Bank Research
3 hours -
Methodist Church hails Mfantsipim@150; calls for “fresh consecration” to excellence
4 hours -
‘Excellence is our inheritance’ – Nana Sam Brew-Butler hails Mfantsipim’s 150-year reign in leadership
4 hours -
Kwaku Azar writes: A-G vs OSP
4 hours -
Mfantsipim–Adisadel rivalry built excellence, not division – Sam Jonah
4 hours -
Vice President launches Mfantsipim’s 150 years of shaping Ghana’s greatest mind
5 hours -
I assure Otumfuo, Mahama will join him to commission KNUST Teaching Hospital by end of this year – Haruna Iddrisu
5 hours -
Barcelona dominate derby to extend La Liga lead
6 hours