Online Reporter
Prosper Ndlovu [email protected]
THE African Union Commission (AUC) and the African Tax Administration Forum (ATAF) are stepping up efforts to plug tax loopholes, strengthen domestic revenue mobilisation and protect African countries’ taxing rights as the continent seeks more resources to finance its development.
The two institutions reaffirmed their commitment to deeper cooperation on practical, African-led tax solutions during a meeting between an ATAF delegation led by Council Chair Dr Johnston Makhubu and AUC Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Francisca Belobe at the African Union Headquarters in Addis Ababa.
The move builds on the two organisations’ cooperation on priority tax-policy issues that can help African countries mobilise more revenue, improve tax compliance and finance sustainable development.
Central to the engagement was the effective application of African instruments and technical tools. The Agreement on Mutual Assistance in Tax Matters (AMATM) was highlighted as an important mechanism for strengthening cooperation among African tax administrations through exchange of information, assistance in tax collection, joint tax examinations and other forms of administrative cooperation.
Such cooperation is increasingly important in addressing cross-border tax evasion, illicit financial flows and aggressive tax practices.
Strengthening Africa’s tax treaty networks was equally prominent. The ATAF Model Double Taxation Agreement (DTA) provides a policy tool to support countries in negotiating treaties that better protect their taxing rights and reflect their development priorities.
Commissioner Belobe encouraged ATAF to intensify coordination and meaningful engagement with the private sector, recognising that bringing businesses into tax-policy and compliance conversations can contribute to improved voluntary compliance, a broader tax base and greater participation in African economies. Stronger compliance, the discussions recognised, also depends on sustained dialogue and greater certainty for taxpayers.
The cooperation will also continue to address the revenue challenges associated with extractive industries and other hard-to-tax sectors, where valuation issues, cross-border transactions, specialised contractual arrangements and limited access to relevant information can complicate effective taxation.
For both institutions, the emphasis is increasingly on translating fiscal instruments into practical benefits for countries. Commissioner Belobe welcomed the progress achieved through cooperation around the Specialised Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration (STC-FMAEPI) and encouraged further work towards improved tax-revenue collection and stronger national fiscal systems.
AUC and ATAF will now work towards finalising the renewal of their Memorandum of Understanding and developing a detailed work plan for the coming years.
The renewed framework will strengthen coordinated action across tax policy and administration, treaty matters, mutual assistance, private-sector engagement and the taxation of strategic and hard-to-tax sectors.
