Tuesday, November 17, 2009

African tax administrators meet soon in Uganda

As noted on our recent blog on South Africa's Pravin Gordhan, the African Tax Administration Forum will be launched on Thursday in Kampala, Uganda, a signal of a new direction in the African tax administration, to promote and facilitate cooperation. Officials from about 25 countries will attend. As AllAfrica.com reports:

“The formation of a continental tax administration forum reflects a new approach and thinking on tax in Africa,” said Allen Kagina, Commissioner General Uganda Revenue Authority. She added that it is a significant move away from dealing with tax collection in a purely technical or administrative manner, to a deeper understanding of the role of taxation in state building.

She noted capital flight, presence of tax havens and the continent’s dependence on foreign assistance and indebtedness as some of the most pressing issues of the revenue sector. “Billions of dollars leave the African continent each year. Between 1961 and 2004, these outflows are estimated at around 7.6 per cent of the annual GDP of the region and in effect make African countries net creditors of donor countries,” Kagina said."

Gordhan added:

“They use the opportunity of different tax jurisdictions, declare their profits in their home jurisdictions and declare their losses in our jurisdictions and then make either no or less tax due.”


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