TAXES Seeking solutions to curb tax avoidance The current era of globalisation requires strong collaboration amongst Africa’s tax administrators if they are to develop solutions that suit African tax environment, an official said.
TAXES Seeking solutions to curb tax avoidanceThe current era of globalisation requires strong collaboration amongst Africa’s tax administrators if they are to develop solutions that suit African tax environment, an official said."More effective and efficient revenue bodies on the African continent would assist in building more capable and accountable states and governments,” Pumla Moguerane, from the African Tax Administration Forum (ATAF), told a meeting of tax administrators in Kigali.The five-day workshop that started on Monday drew officials from tax administration in charge of auditing multinational enterprises from 11 African countries.The course is expected to make participants have an overview of the basic rules and principles of international tax laws and how they may be applied for international tax planning purposes. Participants will also be briefed on practical case studies, most significant legal and practical issues, tax avoidance, the role of tax treaties and anti-avoidance strategies.Pumla, who spoke on behalf of the Executive Secretary of ATAF, said the Forum’s three-year work plan is to enhance professionalism and effectiveness of African tax administration, through regular trainings."Audit techniques of multinational enterprises place a crucial role in the way we relate to the taxpayers and our internal approach and skills in dealing with these complex international tax laws,” she said.Richard Tusabe, the Deputy Director General and Commissioner for Customs and Excise department at Rwanda Revenue Authority (RRA), said the training was timely, especially that the government is trying to attract Foreign Direct Investments."The meeting aims at equipping tax administrators with skills that will ensure that these companies do not take all the profits to their base,” Tusabe said. "We should be in position to identify the actual transfer prices that these companies charge their subsidiaries and see if they are not over inflating,” he added. Dietmar Elbert, a trainer from German Federal Central Tax Office, said because of global connection, exchange of information is crucial to avoid transfer of income abroad."It’s a common problem all over the world (shifting of income) and it’s a burden to developing countries; auditing techniques will help get and manage information,” he observed.