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THE African Tax Administration Forum (ATAF) has issued a comprehensive toolkit designed to assist member countries including Zimbabwe in joining the ATAF Agreement on Mutual Assistance in Tax Matters (AMATM).
The new toolkit outlines the practical steps for African countries to join the AMATM including the signatories, the delegation of authority, the ratification process and the final submission of the instruments to ATAF.
The AMATM treaty is viewed as a pivotal tool in the fight against tax evasion and avoidance by facilitating cooperation among African tax administrations.
In a globalised economy, multinational companies and wealthy individuals can easily move resources across borders, making it difficult for tax administrations to assess and collect the correct taxes, said ATAF in a press statement released Wednesday.
The regional tax lobby organisation said the AMATM provides a framework for African countries to cooperate in tax matters, including the exchange of taxpayer information, joint audits, and assistance in recovering tax debts held abroad.
The treaty is aligned with international best practices and is open to all ATAF members. In his remarks ATAF executive secretary Mr Logan Wort, emphasised the treaty’s importance.
“The AMATM is a critical instrument for enhancing tax cooperation across Africa. It supports our members in closing information gaps and ensuring that taxes owed are collected, contributing to the development of public services,” he was quoted as saying.
“This toolkit will empower our members to take full advantage of the treaty’s provisions.”
ATAF has encouraged all members to utilise the toolkit and join the AMATM, furthering the continent’s efforts to combat illicit financial flows and support economic integration under initiatives such as the African Continental Free Trade Agreement (AfCFTA).
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