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

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Key observationsSmall and micro enterprises are generally many in number, usually do not maintainaccounting records, often are illiterate, and contribute little to revenue. Modernrevenue administrations realize they will not achieve overall complianceimprovements unless they reign in this hard-to-tax segment. Improving effectivenessof the taxation regime for small and micro enterprises will broaden the tax base,improve the fairness in the tax system and enhance overall voluntary compliance.Survey results indicate that preliminary work is being done to implement specialtaxation regimes for small and micro enterprises. Most of the special regimes arepresumptive, turnover-based systems and they exclude incorporated businesses anddefined services. 102102 A review of a number of taxation regimes for small and micro taxpayers in SSA countries reveals that they generallydo not meet two critical objectives in the design of a presumptive regime, that is: (1) equivalence with normal regime;and (2) transition across regimes (Masters, forthcoming). Because these objectives are critical in the design of apresumptive regime, achievement of intent is questionable. The paper makes a number of recommendations foraddressing these critical design issues.65
D. Use of modern electronic applications in tax administrationIntroductionThe use of modern electronic applications in tax administration in the surveyedrevenue bodies is reviewed in this section. Revenue bodies were asked to:(1) indicate whether they have a separate substantial in-house IT function;(2) the approaches they used to develop and acquire IT systems for tax administration;(3) the performance of their current IT systems; and(4) indicate whether they use modern electronic applications such as electronicregistration, electronic filing and electronic payment.Survey findings (Tables 23 and 24)• All revenue bodies (except Burundi) have a separate and substantive in-houseIT function.• Eight revenue bodies have or are developing an ITAS.• The most common approach used for implementing ITAS is acquiring either aCOTS solution or a tax solution developed for a third country and customizingthe same for local conditions using a combination of local and externalresources. Only Tanzania developed an ITAS largely from scratch using inhouseand external resources.• Majority of the revenue bodies are still dissatisfied with performance of theirrespective IT systems.• Most of the revenue bodies maintain their systems using in-house resourcessupported, occasionally by the vendor/external consultants.• Six revenue bodies offer options for electronic registration of taxpayers: 5(Ethiopia, Kenya, Mauritius, Senegal and South Africa) have partiallyimplemented automated tax return filing systems; only 3 revenue bodies offerelectronic payment systems for payment of tax and settling VAT refund claims;and only South Africa allows provides internet banking services.Key observationsA start has been made in implementing modern IT systems (such as ITAS) andelectronic self-help services (such as electronic registration, filing and payment areslowly being implemented in a few countries). Revenue bodies are also striving toenhance:(1) utilization of the full potential of available IT systems; and(2) increasing the array and reliability of electronic self-help service/options.As already mention, further developments in this areas will, in most countries, requiresignificant scaling up of the proportion of funding dedicated to the IT function.66
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INTERNATIONALTAXDIALOGUE2010Revenue
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Table 12: Total cost of collection
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PCCAPAYEPITPSVRAGBRRARTSASACUSARSSS
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Executive summaryRevenue administra
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Institutional arrangements for reve
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• All unified semi-autonomous rev
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B. Scope of revenue bodies’ respo
Page 15 and 16: C. Relative autonomy of revenue bod
Page 17 and 18: Survey results (Table 3)• All rev
Page 19 and 20: Key observationsRevenue administrat
Page 21 and 22: You are entitled to expect SARS:Box
Page 23 and 24: Box 4: An example of a codified set
Page 25 and 26: Table 2: Tax and non-tax revenues a
Page 27 and 28: Table 4: Decision making structures
Page 29 and 30: The organization of revenue bodiesC
Page 31 and 32: The ‘taxpayer segment’ model: A
Page 33 and 34: Key observationsSurvey results indi
Page 35 and 36: Box 6: The common characteristics o
Page 37 and 38: C. Office network and staffingIntro
Page 39 and 40: Table 7: Selected features of the o
Page 41 and 42: Table 9: Number of staff and distri
Page 43 and 44: A. Strategic planning and managemen
Page 45 and 46: Key observationsThe corporate plann
Page 47 and 48: Table 10: Selected management pract
Page 49 and 50: A. An overview of funding mechanism
Page 51 and 52: B. Revenue administration expenditu
Page 53 and 54: Table 13: Share of total wage bill
Page 55 and 56: Revenue performance 76Chapter VKey
Page 57 and 58: Table 15: Revenue collection data f
Page 59 and 60: Domestic tax return filing, assessm
Page 61 and 62: A. Taxpayer registration and design
Page 63 and 64: VAT• All the surveyed countries h
Page 65: C. Taxation of small and micro-busi
Page 69 and 70: Table 18: PIT filing, assessment an
Page 71 and 72: CountryHow is the final annual PIT
Page 73 and 74: Table 20: VAT filing, assessment an
Page 75 and 76: CountryTable 21: Taxation of small
Page 77 and 78: CountryBasis used todeterminetaxMal
Page 79 and 80: Use of electronic application in ta
Page 81 and 82: Legal and administrative powers of
Page 83 and 84: functions. These powers are also co
Page 85 and 86: Table 26: Information gathering pow
Page 87 and 88: CountryTable 28: Interest and admin
Page 89 and 90: CountryTable 29: Interest and admin
Page 91 and 92: CountrySouth AfricaTanzaniaUgandaZa
Page 93 and 94: CountryMalawiMauritiusRwandaSierraL
Page 95 and 96: AnnexesAnnex 1: Organization struct
Page 97 and 98: KRABoard of DirectorsCommissionerGe
Page 99 and 100: ZRABoard of DirectorsCommissionerGe
Page 101 and 102: ERCADirector GeneralAdvisory BoardE
Page 103 and 104: MauRABoard ofDirectorsInternal Audi
Page 105 and 106: Clarify SARS’operatingmodel,strea
Page 107 and 108: Enhancethe URAcorporateimageLevel o
Page 109 and 110: KRAMissionVisionValuesTo promote co
Page 111 and 112: ZRAMissionVisionValuesTo maximize a
Page 113 and 114: MauRAMissionVisionValuesTo continua
Page 115 and 116: GRAMissionVisionValuesTo supervise
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Source: ECRA• Cross cutting issue
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MalawiType of taxRevenue collected
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GhanaTax categoryRevenue collection
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