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

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Chapter V reviews revenue performance data and notes that the majority ofcountries have tax-to-gross domestic product (GDP) ratios higher than 16.8%, theaverage in low-income and fragile SSA countries in 2008. It is observed that indirecttaxes contribute the highest proportion of revenue in 7 countries while direct taxesand international trade taxes account for the highest proportion of revenue collectionin 6 and 2 countries respectively. A review of data from some countries indicates thatnon-tax revenues account for a very small proportion (about 1-2%) of total revenuecollection.Chapter VI discusses approaches and practices of tax administrations regardingtaxpayer registration, return filing, and tax payment systems. The survey establishesthat all revenue bodies, except South Africa, assign taxpayers an identificationnumber ostensibly across all tax types, including customs. However, it is apparentthat this number is not unique in 7 revenue bodies as they also assign additionalidentifiers for corporate income tax (CIT) and Value Added Tax (VAT). All revenuebodies’ personal income tax (PIT) and CIT systems are, in principle, administered onthe basis of self-assessment principles. Implementation of the VAT is a commonfeature across all surveyed countries. The survey notes the use of 2 VAT thresholds ina few countries (one for sale of goods and another for services). The survey alsoestablishes that all revenue bodies, except Botswana and Mauritius, have put in placea special presumptive taxation regime for small and micro-enterprises, while 6 havealso set up dedicated units responsible for administering the regime. All revenuebodies (except Burundi) indicated that they have a separate and substantive in-houseIT function and some are developing or plan to implement integrated taxadministration systems (ITAS) that provide for self-help services such as electronicregistration, filing, and payment. Majority of the surveyed revenue bodies indicatedthat they are still dissatisfied with their existing IT systems.Chapter VII reviews powers available to revenue bodies. All the surveyed countrieswere found to, and believe that they have sufficient powers to enforce payment of tax.It was also observed that in a number of countries, interest and penalty regimes differfor the same offence across tax-types and specifically for CIT and PIT on one hand,and VAT on the other.7
Institutional arrangements for revenue administrationChapter IKey findingsInstitutional arrangementsIn 13 countries, revenue administration is the responsibility of a unified semiautonomousrevenue body.• Eleven of the 13 unified semi-autonomous revenue bodies have a governancestructure that includes an oversight board of directors.• Two unified semi-autonomous revenue bodies are more autonomous as theirgovernance structures provide for advisory committees which do not haveoversight responsibilities.• In 2 countries, revenue administration is the responsibility of a single revenueadministration directorate within the Ministry of Finance (MOF).Scope of responsibility• All the 13 unified semi-autonomous revenue bodies administer both tax andcustoms.• Revenue bodies also administer a number of non-tax revenues, the mostcommon being motor vehicle fees.• Three revenue bodies have (to some extent), or are in the early stages ofintegrating the collection of social security contributions with tax operations.Autonomy of revenue bodies• All revenue bodies indicated that they have sufficient powers to interpret taxlaws and issue binding or non-binding public and private ruling of how taxlaws will be interpreted.Delegation of authority• The majority of revenue bodies are of the opinion that they are fully involvedin, and contribute towards the making of tax laws in their respective countries.• All revenue bodies indicated that they have powers to remit administrativepenalties and charges.• Majority of revenue bodies have powers to allocate budgets internally,independently design internal structures, fix levels and mix of staff, hire anddismiss staff, set performance levels and negotiate salary with staff.Internal governance structure• All revenue bodies have an internal audit department and are also subject toreview by external public and/or private auditors.Tax payers’ rights and complaints handling• In the majority of revenue bodies, taxpayers’ rights are enshrined inadministrative documents.• All revenue bodies, except Burundi, have internal structures for receiving andaddressing complaints from taxpayers.8
Page 1 and 2: INTERNATIONALTAXDIALOGUE2010Revenue
Page 3 and 4: Table 12: Total cost of collection
Page 5 and 6: PCCAPAYEPITPSVRAGBRRARTSASACUSARSSS
Page 7: Executive summaryRevenue administra
Page 11 and 12: • All unified semi-autonomous rev
Page 13 and 14: 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
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Domestic tax return filing, assessm
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A. Taxpayer registration and design
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VAT• All the surveyed countries h
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C. Taxation of small and micro-busi
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D. Use of modern electronic applica
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Table 18: PIT filing, assessment an
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CountryHow is the final annual PIT
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Table 20: VAT filing, assessment an
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CountryTable 21: Taxation of small
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CountryBasis used todeterminetaxMal
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Use of electronic application in ta
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Legal and administrative powers of
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functions. These powers are also co
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Table 26: Information gathering pow
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CountryTable 28: Interest and admin
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CountryTable 29: Interest and admin
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CountrySouth AfricaTanzaniaUgandaZa
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CountryMalawiMauritiusRwandaSierraL
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AnnexesAnnex 1: Organization struct
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KRABoard of DirectorsCommissionerGe
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ZRABoard of DirectorsCommissionerGe
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ERCADirector GeneralAdvisory BoardE
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MauRABoard ofDirectorsInternal Audi
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Clarify SARS’operatingmodel,strea
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Enhancethe URAcorporateimageLevel o
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KRAMissionVisionValuesTo promote co
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ZRAMissionVisionValuesTo maximize a
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MauRAMissionVisionValuesTo continua
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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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