Revenue Administration in Sub-Saharan Africa - International Tax ...

The organization of revenue bodiesChapter IIKey findingsOrganizational structures/features• Most of the surveyed revenue bodies are currently implementing majorrevenue administration reforms, including organizational and institutionalredesign.• Majority of the revenue bodies’ organizational structures are hybrid in nature,exhibiting features attributable to two organizational models (functional andtaxpayer segmentation).• Revenue bodies have set up a dedicated headquarters function to provideoperational policy guidance to field delivery.• As noted in Chapter I, tax and customs administration remain distinctdepartments in the majority of revenue bodies (except Ethiopia), only sharingcommon corporate and a few revenue administration functions.• In a number of countries, direct reports to the head of the revenue body havebeen reduced by consolidating oversight of all or some corporate/supportservices under a single executive—Corporate/Support Services. Day-to-daysupervision of tax and customs field operations has been consolidated in somecountries under a single point for greater oversight.Large taxpayers’ office• All revenue bodies (except Botswana) have set up a large taxpayers’ office(LTO) to administer the tax affairs of a small number of large enterprises andindividuals in some countries) that contribute 60 – 70% of tax revenue.• In line with international practice, annual gross turnover is the main criteriaused in all countries for assigning taxpayers to the LTO.• Other factors commonly used to assign taxpayers to the LTO include: (1)enterprises associated with or related to a large enterprise; (2) enterprisesengaged in complex or specialized operations (such as banking, insurance,energy, telecommunication, and mining); (3) revenue contribution; and (4)number of employees.• Special taxation regimes for small and micro enterprises have beenimplemented in a number of countries.Staff distributionIn most countries, over 30% of staff resources are based at the headquarters and/orengaged in support activities.28