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DABATE on how African countries can deal with the increasing problem of Illicit Financial Inflows is expected to take centre stage when tax administrators from various countries meet for the second Africa Tax Administration Forum (ATAF) from Tuesday to Thursday in Lomé, Togo.
In a statement, ATAF said the gathering of African revenue commissioners will be hosted by Mr Henry Gaperi, the commissioner-general of the Office Togolais des Recettes and run under the theme “Tax Compliance and Limiting Illicit Financial Flows”.
It added that discussions will be centred on curbing the non-compliance of taxpayers and answering the big question of how this can be attributed to Illicit Financial Flows (IFFs).
“The conference hopes to unpack the various structures associated with IFFs and how their impact may be minimised on the continent,” said ATAF.
ATAF chairman and Zimbabwe Revenue Authority commissioner-general Mr Gershem Pasi said: “In Togo, we look forward to discuss raising domestic revenue capabilities and mobilisation strategies for Africa.”
The executive secretary of ATAF, Mr Logan Wort, said the conference will consider drivers of tax compliance and illicit financial flows as key revenue risk mitigating factors for Africa.
According to the Africa Economic Outlook of 2015, 65 percent of all illicit financial flows, occur through international commercial transactions that include tax evasion, trade mis-invoicing and abusive transfer pricing, which involve mainly multinational corporations.
ATF said recognising the importance of the report on illicit financial inflows from Africa produced by the former South African president Thabo Mbeki High-Level Panel, the organisation has grasped the urgency with which African countries should collaborate to ensure the stemming of the practice from the continent.
“Examining the link between issues of tax compliance and illicit financial flows and exploring possible recommendations for African tax policy and administration to effectively counter their negative impact will thus form the basis of discussions at the 2ICTA conference in Lomé.”
It added that the conference will also discuss strategies of increasing voluntary compliance which is an essential component among the building blocks of modern tax administrations.
“As identified in the ATAF Report on Good Tax Governance of 2011, developing a culture of compliance requires that tax administrations view and treat taxpayers first as clients rather than tax evaders and avoiders. Well-defined and well-executed educational campaigns by tax administrations through the media and other new technologies can greatly help in ensuring that taxpayers understand and accept the compliance requirements.”
It added that speakers and panellists at the conference will include Heads of African Tax Administrations and Senior Officials of African Ministries of Finance, while representatives of international and continental organisations, as well as from the private sector, civil society and academic institutions, were also invited to contribute to the understanding of the issues at hand.
derick.khumalo
Online Reporter