ATAF Offers Roadmap for African Tax Authorities on Disclosure Programs
The guide also stresses robust public communications as critical for driving participation and compliance.
PRETORIA, South Africa-- African nations looking to boost tax revenues and compliance now have a comprehensive guide for implementing effective voluntary disclosure programs, writes Winston Mwale.
The African Tax Administration Forum released its "ATAF Guide on Implementation of Voluntary Disclosure Programme" this week, touting it as a "pivotal tool" for encouraging non-compliant taxpayers to regularize their affairs.
"We believe that this guide will serve as a valuable resource for African tax administrations, empowering them to implement effective VDPs tailored to their unique contexts," said ATAF Executive Secretary Logan Wort.
The guide draws on the experiences of ATAF members like South Africa, Nigeria and Kenya that have realized substantial benefits from voluntary disclosure initiatives.
"The opportunity offered by implementing a VDP can be significant," an ATAF statement states, noting developing countries have identified billions in additional tax assessments from similar efforts since 2009.
To assist tax authorities in replicating those successes, the publication provides sample legislative text, explanatory notes and insights on key policy choices.
These include defining eligibility rules, program timeframes, protection levels for disclosed information and potential relief on penalties.
The guide also stresses robust public communications as critical for driving participation and compliance.
As African nations seek to expand their tax bases and combat illicit financial flows, the new ATAF roadmap aims to help them effectively leverage this underutilized enforcement approach.
Download the guide below:
