TWENTY one African countries have
arrived at a consensus on a text for mutual assistance in tax matters.
The African Tax Administration Forum (ATAF)
member countries have thereby established a legal basis from which African tax
administrations can now provide assistance to each another on tax collection and
other tax matters in respect of exchange of tax information to carry out single
and simultaneously tax examinations between African countries and
abroad.
ATAF acting executive secretary Logan Wort elucidated there has
been challenge has been to stem the tide of tax and capital outflows despite
growth on the continent.
The exchange of information was critical in
development of African economies as it allowed the continent’s revenue
authorities to initiate work on information gathering which can be relevant to
legal processes of taxpayers in different countries. According to a report
illicit capital flight from developing countries is anything between $500
billion and $800 billion per annum. With more and more aggressive tax planning
taking place revenue authorities need as much information as possible if they
are to counter such practices.
Monica Bhatt, head of OECD Global forum
secretariat was an observer to the meeting and urged those present to also join
the OECD global forum on transparency and exchange of information.
The
next step now is for the respective finance ministers to sign and formally enact
the agreement.
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