Avartar|Technologies

8 July 2015

Countries worldwide crack down on tax evasion

8 July 2015

The Avatar fiscal lottery takes the gamble out of VAT collection and compliance.

There is currently a global interest in the potential of fiscal lotteries to curb tax evasion and to increase governments’ tax revenue. Fiscal lotteries aim to curb informal business-to-consumer transactions by encouraging consumers to claim their sales receipt. The incentive is that this receipt doubles up as a lottery ticket, giving its holder a chance to win a prize.

Various countries in different regions of the world have implemented a fiscal lottery program to optimize VAT compliance and collection. Malta, for instance, was the first European State to introduce such a program, as early as 1997. Recent figures published by the National Statistics Office show that thanks to the fiscal lottery, the Maltese government’s total VAT revenue increased by 12.7% from January to May 2014 compared to the same period in 2013.

Following a few unsuccessful attempts at enforcing VAT compliance, Greece decided to tackle its massive VAT evasion problem through a fiscal lottery. By that time, the VAT evasion rate had reached a whopping 30%. The Greek government estimated that the introduction of the fiscal lottery, combined with stricter invoice control, would enable it to collect an additional 500 million euros (or US$615 million) on a yearly basis.

Thailand is the latest country to envisage the implementation of a fiscal lottery. The Ministry of Finance is indeed planning to reintroduce prize draws to raise the State’s tax revenue, rather than increasing the VAT rate. This new measure is expected to increase the country’s tax revenue by 10%.

Clearly, the incentivization of the consumers is a key aspect of the tax compliance enforcement strategy. In this respect, the Avatar electronic fiscal solution is currently the most advanced and the most comprehensive on the market. The developers of the Avatar Electronic Fiscal Declaration (EFD) solution have understood that it is crucial to involve the consumers, as the latter have the power to force compliance on the traders simply by claiming their purchase receipt.

That is why these developers have integrated a Fiscal Lottery Program in the Avatar EFD solution. Any receipt printed using an Avatar G4 or G5 sales-recording device displays a lottery ticket number that allows the holder to enter a lucky draw. Avatar’s EFD solution thus allows the authorities to considerably increase the number of claimed receipts, which has a positive impact on the number of receipts issued by traders.

One of the many benefits of the Avatar solution is that it brings the customers into the compliance circle through its integrated fiscal lottery mechanism, thus forcing compliance upon the merchants. Unlike other solutions, it uses a proven crowdsourcing scheme to deter VAT suppression and tax avoidance in the retail sector.

Read the whole article: http://www.pattayamail.com/business/finance-ministry-to-maintain-7-vat-may-revive-tax-invoice-lucky-draw-47762

2 July 2015

Tanzania to broaden tax base through electronic receipts

1 May 2013

The Tanzanian government expects to collect 600 billion shillings ($370 million) a month after a new tax system expanding the use of electronic tax register (ETR) machines takes effect on May 15th. Currently, the government collects 400 billion shillings ($250 million) per month in taxes. ETR machines tabulate sales receipts at the close of each business day and electronically send that data to the Tanzania Revenue Authority (TRA) for an accurate tax assessment.

“Under the new system, businesses that earn anything from 14 million shillings ($8,600) to 40 million ($25,000) from now will have to use ETR machines,” said TRA Deputy Commissioner for Domestic Revenue Generose Bateyunga. Previously, these businesses could simply estimate their taxes.

Bateyunga told Sabahi that about 200,000 taxpayers have been avoiding paying taxes or underpaying, adding that aid from donors has been decreasing, therefore Tanzania must broaden its tax base to fund development. In 2010, when Tanzania introduced ETR machines, tax collection improved by 9.6% for the 2010-2011 fiscal year and 23% for 2011-2012. “We are implementing phase two, which will bring on board even more tax payers,” she said.

TRA Director for Education and Taxpayer Services Richard Kayombo said the authority decided to roll out ETRs due to the difficulty of monitoring sales from manual receipts, as dishonest businesspersons have been under-declaring their sales or not issuing receipts at all.

“We are now embarking on the massive campaign for people to demand receipts for anything they buy. Even if it is a beer, a soda or a needle worth 10 shillings, get the receipt,” he told Sabahi. “We ask Tanzanians not just to demand receipts, but to make sure they are ETR receipts and they depict the correct amount paid.”

Kayombo said anyone who sells anything without issuing an ETR receipt will risk being fined 3 million shillings ($1,900) on the spot or twice the amount of the tax evaded, which may be more. TRA Commissioner General Harry Kitilya said that under this second phase, even petrol stations will now be required to issue ETR receipts.

“We have started a pilot project with Engen petrol stations to test our new ETR machines fixed to the pumps,” he told Sabahi. “From now on, when you lift the handle, the machine starts counting how much you have spent. When the handle is returned to the pump, it automatically issues the receipt.”

Under the new system, pumps cannot serve the next customer before issuing a receipt for the preceding customer, he said.

Kitilya said that depending on the success of the second phase, the TRA may implement the ETR system to all businesses nationwide to reduce complaints and increase efficiency. Potian Michael, owner of a welding company in Dar es Salaam, applauded the government’s decision to expand the use of ETR machines. Under the old system, he overpaid because the TRA over-estimated his sales, he said. AP Media and PR Consult Limited Managing Director Peter Keasi said broadening the tax base is a good idea, but voiced scepticism over the government’s ability to change people’s attitudes.

Tanzanians are not used to demanding a receipt when they purchase goods or services, he said, therefore the campaign to change that must be massive, and the government must ensure that ETR machines truly capture all the daily business activity on market streets.

Source: sabahi

2 July 2015

Tanzania: TRA now introduces prize to make traders use EFDs

3 May 2013

Tanzania Revenue Authority (TRA) yesterday introduced ‘a car prize’ promotion to encourage traders to use Electronic Fiscal Display (EFDs) machines in their businesses.

“To encourage traders to use the devices, we have introduced this lottery,” TRA Assistant Education Officer Hamis Lupenja told reporters.

He said that traders qualified to join the lottery are those who collect pay more taxes to the authority.

“They will have the chance to win this prize in return. This is to increase the number of EFDs users in businesses in the country”, he said.

TRA Tax Service and Education Officer Alvera Ndabagoye said customers who will buy products from traders without demanding receipts would be punished.

“Any person who’ll be found with goods without a receipt will pay 1,000,000/- as fine.”

Ndabagoye said traders must put the EFDs machines on a visible place for customers to see.

SOURCE: THE GUARDIAN

2 July 2015

Supplement: Electronic Billing Machines and their legal framework

7 May 2013

Rwanda Revenue Authority

In accordance with the new law on value-added tax, all VAT-registered businesses in the country will have to adopt a new transaction registration system based on Electronic Billing Machines.

In a first phase of the implementation of the new system, RRA has allocated the EBM system to 500 selected enterprises in the areas of Nyabugogo, Muhima and Kigali city center. These were taxpayers who did not have any form of electronic receipting systems and RRA chose them to help them to adjust to the new regulations.

While most of the recipients have cooperated, a few of them have complained that the system was imposed upon them. That is rather surprising, considering that the law requires that all VAT-registered companies will have to use the system, and that these 500 taxpayers received the system for free, while others will have to acquire it themselves.

“Inasmuch as we collect taxes for our country’s development, we do so through proper legal frameworks,” says Charles Kabera, RRA’s head of Risk Management Division in the Domestic Tax Department who is also the EBM project manager. “While failure to comply with tax laws can result in penalties, at RRA we believe we can avoid this by developing a mutual understanding with our taxpayers.”

The new VAT law

The adoption of EBMs draws its legal mandate from the new VAT law published in the Official Gazette of 05/02/2013 as Law N°37/2012 OF 09/11/2012 establishing Value Added Tax.

The law’s article 1 explains its purpose as being to establish the value added tax on supplies of goods and services in Rwanda as well as on imported goods and services from outside Rwanda.

Article 3 mandates RRA to deduct VAT from all taxable goods and services as well as taxable imported goods and services. However, the law requires RRA to compute the amount of VAT charged on taxable goods and services or imported goods and services by applying the rate specified by law to the value of the goods/services being taxed.

In Rwanda, RRA charges a rate of 18% on all taxable goods and services, although some goods or services are zero-rated or exempted from VAT (see sidebar).

According to the law, VATon the taxable goods or services produced within Rwanda is paid to the Commissioner General (RRA) by the taxpayer who supplied goods or services while VAT on imported goods or services is paid by the importer.

RRA maintains an up-dated list of all registered VAT payers in the country complete with their locations.

Challenges faced by RRA in collecting VAT

While there are over 7000 VAT-registered taxpayers in the country, the business of redeeming taxes from them is not easy.

Robert Mugabe, RRA’s Director of Revenue Protection explains that while there are many compliant taxpayers in the country, there are also a good number who don’t comply and are always looking for new ways of evading taxes.

This has serious consequences:

Loss of domestic tax revenue by the government.
Increased cost of tax collection which hurts projected revenue earnings.
Unfair competition where those who evade taxes make bigger profits than those who comply.
Habits of tax evasion lead to hostility between RRA and some tax payers, this is not necessary.
Consumer exploitation as their contribution through VAT inclusive prices is retained by dishonest and evasive taxpayers.

To reduce tax evasion and fraud as much as possible, the government examined various possible mechanisms and finally opted for the electronic billing machines, an approach that has succeeded elsewhere such as in Tanzania and Kenya.

Article 24 of the VAT law states that ‘Value added tax registered persons are obliged to use a certified electronic billing machine that generates invoices indicating the tax as agreed by the tax administration’.

Responsibilities of the VAT registered taxpayer

As a taxpayer, you can help RRA reduce on its cost of collecting VAT by complying with all tax laws.

Taxes are for national development as they help the government fund provision of public services such as security, education as well as help on reducing donor dependence. As a taxpayer, you can help by being patriotic and honest through meeting all your VAT obligations.
You can buy and install the EBM at all your points of sale (Pos) as required by law.
Once you have bought the EBM machines meeting the RRA requirements, make sure they are working and recording data properly.
Ensure that you issue an electronic generated receipt generated by the EBM complete with all the sales details.
Ensure that all sales transactions are recorded on the EBM machines certified by RRA as required by law.

Responsibilities of the consumer

Every consumer has a responsibility to make sure the VAT charged on the goods/services they pay for, is delivered to RRA in accordance with the law.

As a consumer, insist on an electronically generated receipt for every purchase. If a vendor refuses to issue you a receipt, return the goods and don’t pay.
Report to RRA’s toll free numbers anyone who refuses to issue electronic receipts.
Be a responsible citizen by ensuring your tax contribution is well accounted for by getting receipts for all your purchases.

Advantages for all

If we all encourage the use of EBM machines, RRA will find collecting VAT much easier, and will also reduce its overhead cost and the resulting resources would be used in the nation’s development.

To the tax payer, you will have fewer visits from RRA at your businesses which are normally an inconvenience to you. EBMs will enable RRA to look at your books of accounts from a distance.

To the consumer, having legal receipts for all your purchases protects you legally as they are evidence that you own the goods legally. By insisting on a receipt, you will also be helping to safeguard our tax revenues.

Finally to the government, more taxes means more revenues which in turn means better public services, improved efficiency as well as reduced donor dependency, a key factor for national pride.

Source: The Rwanda Focus

1 July 2015

Kenya: Government Steps Up Fight Against Cyber Crimes

28 May 2013

The government is developing a new plan to counter cyber crime to secure digital transactions and content and encourage investments in internet infrastructure, Permanent Secretary Bitange Ndemo has said. Speaking during the national cyber security forum held yesterday, the Information and Communications PS said there is need for a secure, reliable and efficient means of tackling cyber crime in the country.

“The government is in the process of developing a national cyber security strategy masterplan which will provide the government with a national level plan to defend and secure its digital infrastructure,” said Ndemo.

Communications Commission of Kenya director general Francis Wangusi said Kenya has recently had a surge in cyber crimes such as website defacement, impersonation on social media, email account hacking, cyber bullying, copyright infringement and mobile money transfer fraud.

“The local banks have increasingly become targets of electronic fraud,” said Wangusi. The planned cyber security strategy will recommend cyber security standards for the country’s ICT sector. CCK’s director for ICT Michael Katundu said: “banks are suffering quietly.”

Katundu said the use of weak passwowrds such as one’s name and birthday and sharing of PIN numbers has greatly compromised online and mobile banking transactions. Katundu added Kenya was in need of relevant regulations and laws that will support the fight against cyber crime. He said technical measures should be taken by the government to help this cause and recommended establishment of a national computer incidence response team.

Speakers at the forum called for faster implementation of this strategy especially because of the move to give laptops for primary school children who may become victims of cyber bullying or be exposed to pornographic sites.

Source: The Star, Kenya

1 July 2015

Kenya launches Public Key Infrastructure Implementation

20 May 2013

This week Kenya kicked off the process of setting up a National Public Key Infrastructure (PKI). Many may ask what PKI is, it a system of digital certificates, certificate authorities and other registration authorities that verify and authenticate the validity of each party involved in an electronic transaction. This will create a secure online transaction environment and set up an online identity & verification system. A National PKI will enable and foster the development of various applications incorporating digital signatures and a trusted environment over open networks.

Samsung Data Services, a global ICT service provider from Korea has been awarded the contract by the Kenyan Government to implement the National PKI. Not only has Samsung SDS implemented Korea’s PKI, but they have also implemented the same for the USA, Germany, Malaysia and Japan. With a population of 50 million citizens, Korea currently has 5 accredited Certificate Authorities (Certificate Service Providers) who have jointly issued over 28 million digital certificates.

Korea’s PKI has underpinned the implementation of e-Government systems and services. These include citizen oriented services such as national ID system, taxation; Spatial services such as land information system, underground facility management (gas, water, sewers, oil, electricity), property registration and urban planning among others.

Kenya’s National Public Kenya Infrastructure implementation is expected to be complete by November 2013.

Source: 140friday

1 July 2015

news5

Jan

Ethiopia: Electronic System to Replace Plastic Mobile Top-Up Card

Kifiya Financial Technology Plc (KFT) is working with ethio-telecom to introduce an electronic airtime distribution service. This will be designed to be a cheaper replacement of the existing scratch cards used for prepaid mobile customers. […]

Jan

Ghana: New VAT rate of 17.5% takes effect

The new Value Added Tax (VAT) rate of 17.5 per cent has taken effect. This followed the presidential assent given to the VAT Act 2013 (Act 870) on December 30, 2013 […]

Jan

Tanzania: Tax Device Imports ‘Questionable’

As the Treasury plans to register more than 200,000 new Electronic Fiscal Device (EFD) holders this year, the gadgets may soon be blocked by court action following a query by Tanzania Taxpayers’ Association. […]

Jan

Rwanda: E-Billing Machines – Traders Should Look to Long-Term Gains

When Rwanda Revenue Authority (RRA) introduced electronic billing system in February last year, it was after assessing and weighing several pros against the cons of the system. […]

Jan

Tanzania: Mwanza traders condemn TRA

Shops and other businesses in the city of Mwanza have reopened after three days of strike in a protest over what traders described as government institutions’ discrimination and ill-treatment of business people generally. […]

Jan

Rwanda: RRA withdraws privileges from E-Billing Machine defaulters

Rwanda Revenue Authority (RRA) announced the withdrawal of administrative privileges from all Value Added Tax registered taxpayers who did not comply with the first deadline […]

Jan

Tanzania: Tax Compliance Assured As EFDs Come Into Effect

The regulation that requires all business people with an annual turnover of above 14m/- to instal an Electronic Fiscal Device (EFD) comes into effect today. Non-compliers by February 1, 2014 risk prosecution and a maximum one-year jail sentence. […]

Jul

Mobile Money Market to Reach $278.9 Billion by 2018

Mobile Money will offer a rewarding opportunity in terms of revenue for the people in its ecosystem both in the near future and over the long term. […]

Jul

Somalia: A new, dangerous job in Mogadishu: tax collector

The Somali traders in Mogadishu’s markets have long faced down Islamist rebels and warlords demanding money. Now they say there is a new predator: the government tax man. […]

Jul

TCS to modernise, automate taxation system in Zambia

Tata Consultancy Services (TCS), India’s largest IT services provider, today announced that it has won a three year contract from the Zambia Revenue Authority […]

Jul

Too many tax avoidance schemes in Africa

There are too many tax avoidance schemes being pursued by taxpayers in Africa, with Value Added Tax (VAT) being the most vulnerable […]

Jul

Kenya: Kenya Revenue Authority closes in on tax evaders

The noose is tightening around tax evaders. This comes as Kenya Revenue Authority (KRA) plans to install enhanced Electronic Tax Register (ETRs) machines by end December. […]

Jul

Zimbabwe: Mobile, Internet Money Surpass Card Payments

Mobile and internet-based transactions have for the first time surpassed card payments after registering a 28,3% growth in the month of May as more account holders turn to the convenience of mobile banking.[…]

Jul

Kenya: KRA revenue collection grows 13.2pc

The Kenya Revenue Authority (KRA) has announced a 13.2 percent revenue growth of Sh93 billion (overall) and Sh88 billion (Exchequer) in the year 2012/2013 compared to 11.4 percent growth in the previous year. […]

Jul

Tanzania: TRA Pushes for Use of Electronic Taxation Gadgets

The Tanzania Revenue Authority (TRA) will embark on an educational programme for Small and Medium Entreprenuers (SMEs) on the importance of using the Electronic Fiscal Devices (EFDs) […]

Jul

Malawi: Government to Promote Use of Electronic Transactions

Malawi has announced a commitment to increasing the use of electronic based money services. Malawi’s primary goals in shifting to e-money are […]

Jun

Uganda to tax mobile money transfers

Uganda is to impose a 10% tax on cash transfers by mobile phones and other money transfer operators. International remittances from Ugandans living abroad are also affected. […]

Jun

Kenya: The trouble with KRA’s e-filing plans

The Kenya Revenue Authority ( KRA) is in the process of moving its tax system from a physical filing platform onto an electronic platform. […]

Jun

Rwanda: Electronic Billing Machines – a Boon, Not a Burden

Recently, Rwanda Revenue Authority (RRA) introduced the Electronic Billing Machine (EBM), a mechanism that benefits both the tax payer and collector. […]

Jun

Is Ghana Ready for a Cashless Economy?

Various economies of the world are moving from the use of cash to a situation where digital is applied. Is Ghana ready for this new revolution? FRED YAW SARPONG report. […]

May

Kenya launches Public Key Infrastructure Implementation

This week Kenya kicked off the process of setting up a National Public Key Infrastructure (PKI). Many may ask what PKI is, it a system of digital certificates, certificate authorities […]

May

Kenya: Government Steps Up Fight Against Cyber Crimes

May

Supplement: Electronic Billing Machines and their legal framework

In accordance with the new law on value-added tax, all VAT-registered businesses in the country will have to adopt a new transaction registration system based on Electronic Billing Machines. […]

May

Tanzania: TRA now introduces prize to make traders use EFDs

Tanzania Revenue Authority (TRA) yesterday introduced ‘a car prize’ promotion to encourage traders to use Electronic Fiscal Display (EFDs) machines in their businesses. […]

May

Tanzania to broaden tax base through electronic receipts

1 July 2015

news4

Mar

Rwanda: New RRA Boss Seeks to Increase Tax Base

The new Commissioner General of Rwanda Revenue Authority, Richard Tusabe, said his mandate is to attract more businesses into the tax base in order to propel government’s goal of self-reliance. […]

Mar

Canada – new tax on digital imports?

The Canadian government is considering introducing a sales tax on e-commerce supplies made by foreign businesses to residents of Canada. At the moment, people that import digital services […]

Mar

Malawi: VAT Collections Jump 20% EFDs rollout

The Malawi Revenue Authority (MRA) hopes the tax base will widen and value added tax (VAT) collections jump by 20 percent following the introduction of Electronic Fiscal Devices (EFDs) […]

Mar

Kenya: Online Shopping? It Is Here in Africa Already

Online shopping is growing apace in Africa. Some of it is very specialized, offering cosmetics or sunglasses (two of the biggest e-commerce sites in Nigeria) […]

Mar

Malawi: EFDs now operational

The Malawi Revenue Authority (MRA) on Wednesday announced the introduction of a tax compliance tool called Electronic Fiscal Devices (EFDs). […]

Feb

Tanzania: Use of Electronic Devices a Must, Traders Warned

Government has maintained that the contested Electronic Fiscal Devices (EFD) must be used by the business community since the machines have been formally introduced in the country. […]

Feb

Rwanda: Understanding the e-billing initiative

Any business that will not have installed an Electronic Billing Machine (under the Rwanda Revenue Authority e-billing initiative to is ease taxation) by April 1 will be penalised. […]

Feb

Malaysia: Govt might rake in billions after MyEG completes Online Tax Reporting project

MyEG Services Bhd, one of the best-performing stocks last year, has finally landed the job to wire up businesses that are required to pay tax to the Government – a project that has been mooted to beef up the Government’s coffers. […]

Feb

Tanzania: Government won’t backtrack on EFDs

As traders continue to strike over the use of Electronic Fiscal Devises (EFDs), Tanzania Revenue Authority (TRA) has said that the government will not backtrack on the directive. […]

Feb

EU commences further negotiations to combat VAT fraud

From 1 January 2012, the EU introduced a regulation on administrative cooperation in the field of VAT. Since then, this regulation has allowed EU member states access to each others VAT databases […]

Feb

Belgium To Phase In Tax Cash Register System In 2015

The Belgian Finance Ministry has published the key dates for the phased implementation of the tax cash register system (SCE) in the hotel and catering industry (Horeca) in Belgium in 2015. […]

Feb

Tax. It’s a lottery.

Could a sales receipt be a winning ‘lottery’ ticket? Portugal is the latest of a number of countries intending to use tax refunds, lotteries or fines to encourage consumers to report payments they’ve made to retailers. […]

Feb

Help Improve Fragile Tax Systems, OECD Tells Donors

The Organization for Economic Cooperation and Development (OECD) has accused international donors of failing to do enough to help “fragile” states increase their domestic revenue. […]

Feb

Tanzania: Despite govt orders, nationwide protests staged over EFDs

Kariakoo market, the busiest in the commercial port city of Dar es Salaam is again at a shut down, only this time traders from cross the country have joined in a nationwide stand off […]

Feb

Why digital tax is good for South Africa

A legal expert has welcomed the South African government’s new electronic services regulations, which will introduce 14% VAT on digital products and services from 1 April 2014. […]

Jan

South Africa: Electronic Services Regulations Published for Public Comment

The public has until February 20 to make their input on the National Treasury’s Electronic Services Regulations. […]

Jan

South Africa: Government wants to levy VAT on foreign e-commerce firms

The government is seeking public comment on how it can levy value added tax (VAT) on foreign companies that sell digital music, e-books and similar services in the local market but do not necessarily have a presence in South Africa. […]

Jan

Digital Taxation: It’s happening

By now, you’ve all probably heard very much about the news that the government plans to implement taxation on digital purchases made from within South Africa. Yes, your government wants even more of your money. […]

Jan

EAC seeks $2m supplementary budget

The East African Community (EAC) has presented a supplementary budget seeking a go-ahead to expend an additional $ 2,143,960 for 2013/14 financial year to meet its programmes. […]

Jan

African leaders must seize the initiative on global tax reforms

As leaders gather together at the African Union summit, new analysis from the Institute of Development Studies (IDS) recommends that they must seize the initiative on tax reform […]

Jan

‘VAT Machines are killing businesses in Gambia’ – Businessmen complain

Local businesses in the Gambia are not the least happy with the recently introduced Value Added Tax (VAT) machines, which were imported into the country by businessman Muhammed Jah’s Quantum net company. […]

Jan

Rwanda: Special Feature – RRA Extends Deadline for Electronic Billing Machines to March 31

In a bid to ensure that all businesses comply with the installation and use of Electronic Billing Machines (EBM), Rwanda Revenue Authority (RRA) has extended the deadline from December 31 to March 31. […]

Jan

Liberia: U.S.$17 Million Budget Shortfall

With just seven months into the 2013/14 fiscal year, Finance Minister Amara Konneh has announced a budget shortfall of about US$17 million. […]

Jan

Establishing a VAT Monitoring System for China

China has rapidly implemented value-added tax reform over the last two years, and it has pledged to complete the reform by finally extending it even to the financial services and real estate industries by 2015. […]

Jan

India: New tax proposals should justify costs of collection, says expert

New tax proposals must be framed in such a manner that cost of collection justifies the amount being sought to be raised. […]

Jan

Rwanda: Tax compliance will improve with culture change

The Rwanda Revenue Authority (RRA) is right to employ punitive measures to compel people to pay tax. […]

Jan

Honduras Raises Its VAT Rate

Honduras has raised its headline VAT rate from 12 percent to 15 percent, with effect from January 1, 2014. […]

Jan

Egypt To Introduce 10 To 12% VAT

Egypt is set to introduce Value Added Tax (VAT) this year after it announced that a bill which places VAT at 10 -12 percent will be finalized by the end of January. […]

Jan

Lebanon will meet debt obligations in 2014

Despite a widening budget deficit and sluggish growth rates, Lebanon should meet its 2014 debt obligations without much difficulty as Lebanese banks continue lending the government […]

Jan

Rwanda: Govt to Tackle Traders Challenges

Government pledged to continue facilitating private investors and eliminating existing barriers to trade, in a bid to propel the economy towards its targets in the second Economic Development and Poverty Reduction Strategy (EPRS2). […]

1 July 2015

news3

May

World Bank To Help Bangladesh On VAT

The World Bank Board has approved USD60m in interest-free credit to modernize the administration of Bangladesh’s value-added tax regime and to boost the tax take. […]

May

How Tanzania loses $1.87 billion annually

Tanzania loses about Sh3 trillion ($1.87 billion) in tax revenue every year through cheating by dishonest companies in import and export transactions, a new study reveals. […]

May

Rwanda races for revenue targets

KIGALI, Rwanda – The Rwanda Revenue Authority (RRA) is finding ways improving efficiencies in revenue collection so that it reach its fiscal year target. […]

May

Tanzania: Traders refusing to use EFDs to go to jail for three years, TRA warns

Businesses and trading enterprises that are by law supposed to use Electronic Fiscal Devices (EFDs) but do not will be charged 5 percent of the total amount of their collections on first warning, on the second warning of defiance, a penalty of 10 percent will be imposed and on the third time […]

May

Tanzania: All fuel filling stations across the country will use Electronic Fiscal Devices

Tanzania Revenue Authority (TRA) has embarked on measures to ensure that fuel filling stations across the country use electronic fiscal devices. […]

May

Tanzania: TRA, Big business rallies traders against EFD use

In a bid to continue evading taxes, big businesses in the country are accused of coaxing smaller traders to protest against the use of Electronic Fiscal Devices (EFDs) and in that regard, media has been urged to increase public awareness on the use of EFDs. […]

May

Zimbabwe: Fiscalisation project stalls

TEN days from now Tanzania’s taxman, Tanzania Revenue Authority (TRA), expects consumers to demand fiscal receipts for everything they buy “even if it is beer, a soda or a needle”, as the second phase of fiscalisation kicks in. […]

May

Botswana post introduces smart card

Monthend long queus at post offices across the country, especially during facilitation of social benefit payments, are expected to be a thing of the past following the introduction of the admirable ‘PosoCard’ by BotswanaPost. […]

May

Zimbabwe: Zimra to review fiscalisation system

The Zimbabwe Revenue Authority (Zimra) is reviewing the fiscalisation system after some challenges were encountered since its introduction a few years ago. […]

May

Uganda: URA to Train MPs in Tax Collection

The Commissioner General of Uganda Revenue Authority Allen Kagina has offered to train MPs in tax collection methods, if Parliament gives her the nod of approval. Appearing before Parliament’s committee on Finance, Planning and Economic Development on April 22 […]

Apr

Tanzania: TRA confers with agencies over EFD prices

The Tanzania Revenue Authority (TRA) has resumed a training programme directed at the business community in a second phase on the viable use of the Electronic Tax Register (ETR), The Guardian on Sunday can report. […]

Apr

Tanzania: President Kikwete directs on EFD tax machine use/price is main issue

Traders in the country will have no room to escape the use of Electronic Fiscal Devices (EFDs). President Jakaya Kikwete has directed the tax authority to ensure the business people use the device. […]

Apr

Rwanda: Traders Face Penalty Over E-Billing Machines

Rwanda Revenue Authority has started penalising Value Added Tax (VAT) registered businesses that have not yet acquired electronic billing machines (EBMs), Richard Tusabe, the RRA Commissioner General, has said. […]

Apr

Macedonia: 5th drawing for the fiscal receipts lottery 28 April

Macedonia/5th drawing for the fiscal receipts lottery 28 April. Citizens, except by post, can also submit the envelopes with fiscal receipts in the point of the State Lottery at the City Square in Skopje. […]

Apr

Namibia: Should the Informal Sector Be Formalised?

Windhoek — Government should focus on the inclusion of the informal sector to boost its contribution to the mainstream economy, a local economic analyst has proposed. […]

Apr

Slovakia has found the solution to increase the VAT collection

Windhoek — Slovakia has found the solution to increase the VAT collection: a lottery tax receipts and prize of 10,000 euros per month. Other countries want to follow suit. […]

Apr

VAT Lottery: In Slovakia, Real Lottery Prize Goes to Tax Man

When Jozef Lazarcik, a 35-year-old factory worker, heard his number called on national television here recently, he pumped his fists, hardly believing his luck. […]

Apr

‘Super tax’ on remittances to Africa hurts development -thinktank

Africans face the highest remittance fees globally, regularly paying a “super tax” to send money home at a cost that hurts families and holds back development in the world’s poorest continent, a leading thinktank said on Wednesday. […]

Apr

India calls for data sharing on taxation

India today called for data sharing on taxation and blamed the industrialised and developed nations for their reluctance on parting with this information. […]

Apr

Uganda: URA to tax government at source

In the recent past, teachers and nurses have laid down tools demanding higher pay. Each time this happened, the Government was quick to point to lack of resources. However, it turns out that government departments have a lot to do with the lack of funds. […]

Apr

Tanzania: TRA Compiles List of Firms Required to Use EFDs

A LIST of business entities required to use electronic fiscal devices (EFD) has been put on the noticeboards of all regional and district Tanzania Revenue Authority (TRA) offices and on its website. This has been implemented in response to a directive given by the Prime Minister […]

Apr

Global economic crime spreads: Latvia has highest VAT shortfall

RIGA – Economic crimes against enterprises and other legal persons continue to grow in the world. According to the PwC 2014 annual report on global economic crime, approximately 37% of respondents admit to being victims of economic crime (up 3% on 2011). […]

Apr

Nigeria’s Upward Revision of GDP Should Sound Alarm on Tax-to-GDP Ratio

The long-anticipated rebasing of Nigeria’s GDP series was finally made public on Sunday April 6, and the general media reaction has been cautiously celebratory. But the reaction has largely missed one big point […]

Mar

Financing the Burundi Revenue Authority – throwing good money after good?

African governments must be able to mobilise revenues from taxation if they are to achieve long-term development. Domestic sources of income are crucial for funding social services aimed at poverty reduction and lessening dependence on foreign aid. […]

Mar

Canada: OECD Releases Discussion Draft On Tax Challenges Of The Digital Economy

On March 24, 2014, the OECD released a discussion draft identifying the major tax challenges raised by the rapidly developing digital economy and summarizing several possible options to address these challenges. Comments on the discussion draft are being accepted by the OECD […]

Mar

Malawi: MRA pilots Electronic Fiscal Devices, a new system of collecting VAT

he Malawi Government has intensified its efforts to address various challenges it faces with tax collection from big shops and companies as Malawi Revenue Authority (MRA) pilots the use of Electronic Fiscal Devices (EFD), a new system for collecting Value Added Tax (VAT) […]

Mar

Malawi mandates use of electronic fiscal devices for all registered VAT operators

Effective 6 March 2014, the Malawi Revenue Authority (MRA) will implement the required use of Electronic Fiscal Devices (EFDs) for Value-Added Tax (VAT) operators. […]

Mar

Kenya govt to automate payments to stop revenue leaks

Kenya will adopt a paperless payment system to stop revenue leakages in its system. According to ICT Cabinet Secretary, Fred Matiang’i, the process shall be complete by April 2, 2014 and is aimed at improving accountability, efficiency and transparency in Government transactions and prevent revenue leaks. […]

Mar

Tanzania: Yes, Informal Sector Should Start Paying Taxes

THREE months from now, the Minister for Finance, Ms Saada Mkuya is expected to table the 2014/2015 Budget in the National Assembly. […]

Mar

Ghana:Finance Minister tasks GRA to think outside the box to meet revenue targets

Mr Seth Terkper, Minister of Finance and Economic Planning, on Thursday tasked the Ghana Revenue Authority (GRA) to delve deep into its wealth of experience as revenue administrator to come out with innovative initiatives and measures to mobilize the needed revenue for the nation. […]

Mar

United Kingdom e-Government success: 5 principles

Since 2010 , UK has taken bold steps in modernising its public service and its successes are well known – it is now on track to becoming the “most digital government” in the G8 by 2015. […]

Mar

Croatia’s Hrvatski Telekom deploys Ingenico payment terminal

Ingenico, a leading provider of payment solutions, announced the deployment of an innovative fiscal solution, along with its local partner Etranet Group. This solution has been implemented for Hrvatski Telekom […]

Mar

Nigeria: Stepping up tax systems in Africa

Payment of tax is a constitutional responsibility of working class citizens and a source of revenue for the government. Through taxes the government raise revenue to provide social amenities for its citizens and develop infrastructure and also improve the economy of the nation […]

Mar

Gov’t To Collect Just Over Half Initial Vat Goal

The Government will realise just over half of its projected Value-Added Tax (VAT) net revenue increase in the first year, the International Monetary Fund (IMF) has warned […]

30 June 2015

Leveraging Africa’s wealth… for Africa

30 June 2015

How Avatar Electronic Fiscal Solution can help stem the illicit cash flows that drain Africa of its resources

Evidence suggests that foreign aid may not be the answer to Africa’s poverty problem. Can one really describe as “poor” a continent that enjoys such a wealth of natural resources, even though most of its countries are low-income? South Africa and Guinea, for instance, are among the 15 countries in the world that are sitting on a fortune of metals and minerals^[1]. Apart from this leverageable wealth, Africa also has many other resources at its disposal.

The sheer size of the informal sector and the insufficient tax revenues (40% to 60% and 10% to 14% of the GDP respectively) in low income countries show that domestic tax resources could be further leveraged to address most of the continent’s socio-economic development needs. In such countries, the VAT gap, that is to say the difference between the VAT that is due and the VAT that is actually collected, is 50 to 60%, compared to 7-13% in developed countries^[2]. Leveraging its own tax resources would therefore allow Africa to considerably increase its tax revenue. This would considerably reduce its dependency on foreign aid.

Tax evasion and other illicit financial flows facilitated through tax havens deprive Africa’s governments of a total of US$35.3 billion every year. This sum would allow the latter to solve many of their problems. Tax fraud and avoidance are greatly facilitated by the lack of control over sales transactions and by the many consumers who neglect to claim their receipts. Both these issues can be traced back to the fact that the tax administration in Africa is mostly paper-based. The modernization of these systems, which entails the implementation of electronic sales-recording methods, is therefore a crucial instrument in the fight against fraud.

As a company specializing in electronic solutions for the optimization of tax compliance and collection, Avatar Technologies recommends a global, holistic approach to this issue. The company’s approach takes into account both the situation and constraints of the African taxpayers and the needs of the tax authorities in terms of monitoring tools.

The Avatar Electronic Fiscal Devices (EFD) solution is well-adapted to the environment of the different African countries. By enabling the authorities to easily access the data they need to counter tax fraud more efficiently, it helps stem the related illicit financial flow exiting the continent. At the same time, it provides African countries with a way of leveraging their own resources to improve their tax revenue and thus to take charge of their own socio-economic future.

Read the whole article: http://www.myafricanow.com/aid-to-africa-from-world/

[1] Source: http://www.businessinsider.com/15-resource-rich-countries-2010-4?op=1

[2] Source: “Supporting the Development of More Effective Tax Systems”. FMI, OCDE, ONU, BM report, 2011

Author: rodelin

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Leveraging Africa’s wealth… for Africa

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