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“Pushing for a more Development-friendly International Framework”

“Pushing for a more Development-friendly International Framework” What Does this Mean for African Countries?. Old domestic legislation with many provisions missing Tax laws and policies guided completely by WB and IMF and WTO OECD and UN Tax Guidelines applied where unclear

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“Pushing for a more Development-friendly International Framework”

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  1. “Pushing for a more Development-friendly International Framework” What Does this Mean for African Countries?

  2. Old domestic legislation with many provisions missing • Tax laws and policies guided completely by WB and IMF and WTO • OECD and UN Tax Guidelines applied where unclear • Inter-African, north-south and south south exchanges • Ignoring society and their needs Africa and the Current International Framework

  3. 1. The Geographical/Language/Policy Division 2. The African Union and Regionalism 3. Failed Tax Collection: Transfer Pricing 4. Linking of Customs Unions of COMESA, EAC and SADC 5. Poor linkage between collection and re- distribution 6. Continued top down approach ATAF 7. Failure to use local expertise The Gaps in the Current African Framework

  4. Increased emphasis on Francophone, Lusophone and the Magreb regions • Increased taxpayer education: tax literacy • Withholding tax • Windfall tax • Linking tax revenue to tax expenditure in the mind of society Alternatives for a New Framework

  5. Tax-free environment via the Tangier Exportation Free Zone. • Considered an 'offshore centre' by the IMF, the Zone was described by Deloitte (2010) as an “offshore financial centre open to all international banks and financial establishments”. • While the headline corporate tax rate is on a par with countries not classified as tax havens, companies are subject to tax “only on income generated from activities carried on in Morocco”, says Deloitte. This creates the perfect loophole for foreign companies eager to circumvent taxation. • Holding company regulations allow for a corporate tax rate of $500 per year for 15 years and a tax exemption on dividend distributions and the repatriation of profits. Morocco (Tangiers)

  6. The Seychelles has been used in the past as a transshipment centre to circumvent sanctions. • According to Fidelity Corporate Services, an offshore agent in Seychelles: 'This means that you can have your International Business Company (IBC) registered in Seychelles with an authorised capital of a hundred million dollars and still pay the same government fee of $100.' • Since 1994, the Seychelles have registered 30,000 IBCs, with 600 new entities created each month. The Seychelles

  7. Less Revenue • Fewer Jobs • Decreasing Social Services • Lower production of goods and services • Increasing economic crisis • Lower standard of living What does this mean for the EU and the G20

  8. Tax like the Environment and Climate change has an effect on everyone! Thank you! Merci!

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