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 […]

5 June 2015

Lebanon will meet debt obligations in 2014

13 January 2014

BEIRUT: 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, economists told The Daily Star. Lebanon faces around $13 billion in debt obligations in 2014 including principal payments of $8.87 billion in local and foreign currency debt that matures this year and needs to be rolled over.

“Lebanon’s government debt is mostly intermediated through the domestic banking system, which still remains stable, well capitalized and profitable,” said Garbis Iradian, International Institute of Finance deputy director for the Middle East and North Africa region.

Lebanon’s debt-to-GDP ratio has been steadily increasing from 133.9 percent in 2011 to an estimated 135.8 percent in 2012 and a forecast 143.9 percent in 2013, according to IIF figures. However, despite its piling debt burden, ranked among the highest in the world relative to its GDP, Lebanon’s sovereign risks remain stable due to a steady debt-to-money supply ratio, Iradian told The Daily Star.

“While Lebanon’s government debt is very high in terms of potential costs of financing the debt, the relevant debt ratio is the debt to M3 [money supply] ratio, which was about 57 percent at end-2013 same as in 2010, rather than debt-to-GDP ratio,” Iradian said.

Lebanese banks, which held 58.6 percent of the total public debt at the end of October 2013, are still enjoying growth in deposits, albeit at slower pace, which according to Iradian is still considered adequate to finance the fiscal deficit. The IIF estimates the fiscal deficit at 11 percent of GDP in 2013. Last year was the second consecutive year that Lebanon posted a primary deficit, estimated by the IIF at 2.5 percent of GDP, up from 0.3 percent in 2012.

So far, the government has not had difficulty borrowing in local currency at stable interest rates. The weighted yield on five-year Treasury bills issued in November 2013 stood at 6.74 percent, unchanged from November 2012. The country’s five-year CDS spreads, the cost to insure against default, were quoted as of Dec. 25 at around 390 points, down from a peak of 527 points in July.

“We have no concerns over the Lebanese sovereign debt at this stage. It has always been supported by a very strong banking system, the latter being itself backed by Lebanese nationals both inside and outside the country,” Philippe Dauba-Pantanacce, a senior economist at Standard Chartered Bank, told The Daily Star.

The banking sector’s total deposits grew around 6 percent in 2013, down from 11.5 percent in 2010, with nonresident private sector deposits growing by around 9. The ratio of claims on the public sector to total assets of banks remained broadly stable at about 23 percent as of September 2013, unchanged from December 2010.

“The ability and will to absorb government paper by the commercial bank has long been described as the main credit-rating driver of public-debt sustainability. The banks actually have a vested interest in making sure no accident happens to the sovereign … considering their massive exposure to it,” Dauba-Pantanacce said.

The government’s refinancing strategy would entail a rollover of the debt ahead of maturity while lengthening the maturity of Lebanese currency-denominated debt, Former Finance Minister and economist Jihad Azour told The Daily Star. In a bid to encourage commercial banks to subscribe to new bonds, the Finance Ministry introduced in 2013 12-year local currency bonds carrying a coupon rate of 8.74 percent, successfully raising $974.4 million from a November issue.

Leading Lebanese bankers, including Francois Bassil, chairman of the Association of Banks in Lebanon, have repeatedly stressed that banks will only roll over the outstanding debts each year, warning that local lenders are not willing to carry additional debts unless the Finance Ministry cut the deficit and showed more willingness to implement fiscal and administrative reforms.

The widening budget deficit since 2012 has been partially attributed to increased expenditures associated with the cost of hosting over a million Syrian refugees. Caretaker Finance Minister Mohammed Safadi estimated that spending rose by $900 million in 2013 as a result of additional allocations to provide medical and social coverage to the Syrian refugees. Government revenues also fell by 2.5 percent in the first 11 months of 2013 due to a drop in customs and VAT receipts.

The Syrian crisis has slashed around 3 percent in yearly GDP growth since 2012, according to the World Bank, while IIF estimates show growth has fallen from 1.1 percent in 2012 to 0.7 percent in 2013.

“Degradation in both the fiscal and debt-to-GDP metrics was inevitable amid a context of near-zero growth rates. Lebanon’s GDP drivers are highly sensitive to changes in sentiment and the current situation has essentially halted economic activity,” Dauba-Pantanacce said.

The stagnating economic activity has led to a decline in tax revenues such as income and property taxes, while expenditures have jumped by about $1 billion in the first 9 months of 2013 compared to the same period in 2012, according to Azour.

“Lebanon needs to have a well synchronized policy between the Finance Ministry and the Central Bank to rollover debt and maintain enough liquidity at the Treasury,” Azour said.

Last November, Central Bank Governor Riad Salameh pledged to maintain stable interest rates through intervention in the bond market a week after Standard & Poor’s downgraded three leading Lebanese banks to “B-” from “B” following a similar rating action on the sovereign. In September and October 2013, the Central Bank sold the equivalent of $2.8 billion from its own portfolio of eurobonds issued by the Lebanese government.

“The main risk is further deterioration in the domestic security situation. … Assuming a new government is formed in the near future and that the recent deterioration in security situation is contained, then sovereign risk could remain stable or the rating agencies will no longer lower their ratings,” Iradian said.

On top of a lower credit rating, Lebanon could find it more expensive to finance its deficit as yields are expected to rise in the United States and Europe once the U.S. Federal Reserve winds down its monthly $85 billion bond purchase program, analysts said.

Source: The Daily Star :: Lebanon News

4 June 2015

EAC seeks $2m supplementary budget

30 January 2014

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. The Assembly also debated and adopted a report of the legal, rules and privileges committee on the assessment of adherence to good governance in the EAC and the Status of the EAC political federation.

Presenting the supplementary budget request to the House on behalf of the Chair of Council of Ministers, Ugandan Minister of State for EAC Affairs, Shem Bageine, remarked that the supplementary budget would prioritise on three main areas.

Out of the specified amount, $ 1,142,763 sourced from USAID, shall be incurred on activities related to Agriculture, Trade and Customs. USD 494, 700 shall be allocated towards the EAC-World Bank Public Financial Management Harmonisation Project while a corresponding $ 506, 497 is expected to be expended to strengthen the East and Southern Africa-India Ocean (ESA-IO) Maritime Security Project.

Under the USAID Project, the Minister remarked that a total of $ 133,700 would be utilized for implementing the EAC Food Security and Nutrition Policy and developing Regional Animal Resources database at the Secretariat. A second amount of $ 341,150 shall be allocated to a raft of trade activities including facilitating the study of the EAC Common Trade Policy and Strategy, development of the AGOA Framework in all the Partner States and in the preparation of strategies promoting exports to the European and emerging markets.

The development of a mechanism for the operationalisation of a Single Customs Territory and the institutionalization of the Revenue Authorities Digital Data Exchange are some of the priorities to be funded under the Customs component of the grant. The stipulated amount is $406,325. The Minister maintained that there was need to ensure harmonization of the procurement, accounting and oversight functions of the EAC as the process to embrace the Monetary Union Protocol commences. The Secretariat is thus expected to support the Partner States in the implementation of International Public Sector Accounting Standards, compliance with the best practices of the Institute of Internal Auditors and in the approximation of legal and institutional requirements, procurement processes and the capacity development requirements.

The Chair of the Council informed the House that a specified amount of $506,497 would be used to strengthen the capacity of the East and Southern Africa-Indian Ocean (ESA-1O) Maritime Security project. This is expected to assist the region in the implementation of the Regional Strategy and Action Plan against Piracy and for Maritime Security. In May 2013, the House approved the Budget of EAC amounting to $ 130, 429,394. The theme of the budget is “Consolidating the EAC Common Market and moving towards the Monetary Union.”

On its part, the Assessment Report on Good Governance and the status of the Political Federation notes that the EAC has drafted a Good Governance Protocol that incorporates a number of pillars including human rights, transparency, accountability and democracy among others. Discussions are on-going on the Protocol. The Committee gives it a nod but recommends that the EAC should enhance institutional mechanisms to monitor and evaluate adherence to the good governance principles in the Community.

On Political Federation, the Report states that the Treaty is not explicit on Political Federation timelines. This prompted the Wako Committee to make recommendations on the Political Federation.

“The Wako Report recommended for an overlapping achievement of integration stages and the fast tracking of Political Federation”, a section of the Report reads.

The Report tabled by the Chair of the Committee on Legal Rules and Privileges, Dora Byamukama, terms the purpose of Political Federation as the desire to unite the Partner States into a Federal State with a unified and coordinated political authority. The proposed Federation will be governed by a Federal Constitution that will be negotiated and subjected to a referendum by the Peoples of the Partner States, the Report denotes. The model of the Political Federation, the Report states, shall have a bicameral legislature, a Presidential system of government with an all-inclusive cabinet and an independent federal Judiciary. A number of federal institutions such as a Central Bank, Electoral Commission and Service Commission are also proposed.

The Committee however observes in the Report that studies in Political Federation show that the rational and vision for political integration need to be articulated afresh. The need to amend the constitutions of the EAC Partner States to allow for Political Federation is also fundamental. The Report terms as fundamental, the need to establish a structure to continuously sensitise on the integration process, in order to eventually achieve a federation that is considered legitimate and people centred. It thus urges the EAC to involve EALA at the Partner State level in the sensitization programmes.

The Report sums up by suggesting the commencement of merging of few areas of federal matters and to give timeframe for federating the remaining ones. In order to arbitrate on such matters in future, it also wants the East African Court of Justice to be given extended jurisdiction to handle the matters of federal nature.

Agencies

2 June 2015

news2

Mar

Tanzania: TRA Moves to Tame Fuel Tax Cheats

THE Tanzania Revenue Authority (TRA) is on its final trials before fixing Electronic Fiscal Devices (EFDs) at all fuel pumps, in a move aimed to improve collection of tax. The taxman said initial trials conducted for almost a year at Engen’s pump stations has shown positive results not only to the authority but to the firm on maximising revenue. […]

Mar

SPAIN: AEAT storms multiple sites to prevent organised tax evasion

SPANISH Tax Agency (AEAT) has launched a crusade against zappers, which allow taxpayers to easily hide accounting records. In December 2014, a special task force with AEAT technicians uncovered the complex fraudulent practices in a chain of Italian restaurants. […]

Oct

Albania to launch fiscal receipt lottery

Albanian government aims to fight grey economy in the country by launching soon fiscal receipt lottery, thus following similar move in neighbouring Macedonia of last year. […]

Sept

Slovakia: How To Catch Tax Dodgers With a Lottery

Slovakia has a VAT gap because too many businesses are not paying the tax money they owe. Slovakia’s solution to its VAT problem is a lottery. […]

Sept

Billing Machines Increase Tax Collection By 16%

Barely six months after the introduction of Electronic Billing Machines, Rwanda revenue authority (RRA) says the results are impressive. […]

Sept

Kariakoo halts after EFDs protest

Business at Tanzania’s busiest commercial enclave of Kariakoo in Dar es Salaam almost came to a standstill yesterday as most traders refused to open their shops, protesting the introduction the Electronic Fiscal Devices (EFDs) by the Tanzania Revenue Authority (TRA). […]

Sept

Tanzania: No Respite for EFDs Non-Compliant, TRA Says

NON compliant businesses to the Electronic Fiscal Devices (EFDs) will not escape the ‘legal arm’ following a countrywide inspection campaign by the Tanzania Revenue Authority (TRA) in collaboration with the Police Force. […]

Aug

Rwanda Govt agencies blamed for tax collection shortfall

The Rwanda Revenue Authority (RRA) recorded Rwf759.8 billion in total tax revenue collection during the July 2013-June 2014 fiscal year, which was short of the targeted Rwf782.5 billion. […]

Aug

Tanzania: Traders warned against use of unregistered EFDs

Use of unregistered Electronic Fiscal Devices (EFDs) is illegal and will draw severe legal penalties, traders have been warned. The warning was issued over the weekend by the Tanzania Revenue Authority (TRA) whose officials say hefty penalties will be levied against the perpetrators. […]

Aug

Tanzania: Use of EFDs doubles revenue collection – TRA

The Tanzania Revenue Authority (TRA) has reported more than double increase of revenue collections in just three years, an achievement the agency is associating with increased use of Electronic Fiscal Devices (EFDs). TRA says the business community in the country is now increasingly more complacent with the use of EFDs which they had previously rejected. […]

Aug

Rwanda: RRA eyes wider tax base

TThe Rwanda Revenue Authority (RRA) has launched the 13th Taxpayers’ Day celebrations with a promise to widen the country’s tax base. The Tax payer’s Day showcases the contribution of taxpayers to national development. […]

Aug

Zimbabwe: Ecocash and Mastercard to Give Three Million Mastercard Debit Cards Ecocash Customers in the Next Five Years

Zimbabwe’s Econet’s Mobile Money service, EcoCash and MasterCard are set to give over 3 million MasterCard debit cards to EcoCash customers in the next five years after EcoCash announced a landmark agreement with MasterCard […]

Jul

Zimbabwe: Could Zim become Africa’s first cashless economy?

Strive Masiyiwa, founder and chairman of Econet Wireless, wants to turn the company’s mobile wallet technology, known as EcoCash, into Zimbabwe’s primary method of payment. […]

Jul

Pakistan: FBR to have real-time access of sale, purchase data

Registered retailers have been mandatorily required to issue invoices through the Fiscal Electronic Cash Register (FECR) of which the Federal Board of Revenue (FBR) will have real-time access for the scrutiny of sales and purchase data. […]

Jul

Nigeria: VAT Difficult To Measure -FIRS Boss

Alhaji Kabir Mashi, Acting Executive Chairman, Federal Inland Revenue Service (FIRS), said it was technically difficult to measure Value Added Tax (VAT) in the financial service sector. […]

May

EU calls for common position on tax for digital economy

Commission report says corporation tax rules may have to be adapted to respond to digitalisation. European Union member states should adopt a common position on corporation tax in the current debate on changing global tax rules, according to a high level European Commission report on the digital economy. […]

May

Rwanda: RRA Concerned As Traders Shun Billing Machines

The tax authority is concerned that many traders, especially in the small and medium business cluster, are scheming ways to avoid using the electronic billing machines, leading to loss of revenue through tax evasion. […]

May

Nigeria: Multiple Taxes – Cross River Deploys ICT for Revenue Collection

Senior IT. Correspondent Local government areas in Cross River State have introduced payment of levies through Point of Sale terminals in market places so as to curb multiple taxation and thefts by tax collectors. […]

May

Ethiopia: ERCA Collected 79 Billion Birr during the Past 9 Months

A report released by the Ethiopian Revenue and Customs Authority (ERCA) on Monday, May 12, 2014, has unveiled the authority has failed its target of collecting 88.3 Billion Birr […]

May

African Tax Collections Grew By 1.6 Percent Of GDP In 2012

The Organization for Economic Co-operation and Development has released a new report advising African nations on how to boost their tax revenue collections to foster sustainable development. […]

May

Mexico: Electronic arm-twisting

Santo Domingo square in downtown Mexico City is a colonial jewel where old-fashioned scribes write letters for the illiterate. Until a few weeks ago, it was also a place where unscrupulous vendors created fake invoices for tax-dodgers.[…]

May

VAT lottery bears first fruits

EARLY calculations by state economists show that the real impact of the receipt lottery on the collection of value-added tax will be some €8 million a year, just a fraction of the income that already goes into the state’s coffers. […]

17 May 2015

efdsolution

efd solution v-sdc delivering vat information

Benefits of the Avatar ERA solution

broadens the tax base though increased domestic tax collection, lower cost of compliance and reduced revenue leakage
eliminates red tape and increases ease of compliance for vendors
lowers cost of collection for fiscal authorities
increases efficiency of tax administration

The Avatar ERA solution provides

new fiscal auditing tools at central and local levels
VAT-compliant electronic Sales Data Controller (SDC) devices to all merchants and traders
greater transparency and fairer tax collection practices
improved fiscal infrastructure security
improved information exchange between relevant government entities

Unique characteristics of the Avatar Electronic Revenue Assurance (ERA) solution

Governments bring the consumer into the compliance circle with the introduction of an online fiscal lottery to reward all consumers who request and retain their VAT-return confirmation tickets at the point of sale. The Avatar invoicing system can transmit the lottery ticket to the consumer electronically—by SMS. This allows governments to have access to real-time, highly secure sales and fiscal data at the point of sale, and a VAT-compliant environment is created.

Our Solution offers:

robust EFD devices to suit all vendor environments, including those with limited access to power or other supporting infrastructures
battery-operated devices for environments with frequent power outages
devices operating multiple SIM cards, to reduce downtime and lost sales as a result of communication failures
backup systems in the event of a total system failure caused by loss of power and/or inactive telecom GPRS networks
secure back-up with call centre agent assistance for sales declarations and issuing of electronic VAT ticket through simple technologies and processes—USSD, secure SMS or IVR—in case of a complete failure of the merchant’s devices

Other benefits of the Avatar Electronic Revenue Assurance Solution:

seamless integration between EFD devices and data servers
secure data warehousing facilities
real-time information management allowing for close monitoring of EFD device usage
100% intrusion-proof network
customer-incentive strategies to increase compliance

The Avatar platform

We were aware of the shortcomings of other electronic fiscal devices and platforms currently deployed across Africa and world-wide—which motivated us to develop an optimal solution to deliver measurable results consistently and cost-effectively, in a variety of environmental and infrastructural conditions.

Why the Avatar platform is suitable for any market:

multiple layers of redundancy throughout the system—devices support several SIM cards—to provide redundancy on the GPRS transmission layer
Border Gateway Control protocols implemented to provide dual data link connectivity between Avatar and the government department in control
real-time transmission of transactions between devices and Avatar servers
network integrity monitoring system with real-time alerts in the event of malfunction anywhere in the system
comprehensive dashboard enables authorised users to monitor the network and device activities in real time, while the business-intelligence layer allows for quick decision-making
communication links and an information platform operated on a secure private network creates a secure and closed ecosystem with no contact with the Internet
real-time data replication
remote device management
fail-proof security protocols at device, network and user levels
dynamic, flexible, customisable and scalable architecture.

Compliance is easy and value-added services win over the customer.

We understand that even a perfectly designed electronic invoicing solution cannot succeed without the willing participation of the taxpaying customers, so our solution incorporates a number of benefits for the customers themselves–to create value, ease the burden of compliance and improve cost-effectiveness.

Avatar’s business approach includes the following benefits and incentives for the taxpayer, facilitating the introduction and imposition of the electronic fiscal declaration network by the authorities:

free online accounting software for all traders who are VAT-compliant
secure data warehousing facilities
seamless integration with revenue authority systems—no need for the customer to purchase additional expensive hardware—cost of compliance is very low
real-time access to electronic sales ledgers for bookkeepers or accountants to monitor VAT declarations, make corrections and process merchandise returns
generation of automatic tax declarations subject to review by the user before submission to the Revenue Authority
immediate calculation and processing— improves cash flow for the business
more transparent and accurate calculation of tax liabilities, thus allowing businesses to plan timing of payments more efficiently
permanent backup and archiving of all financial records, remote access for the customer in the event of device or personal computer failure

How Avatar’s Electronic Revenue Assurance (ERA) Solution can be applied to the telecoms industry

Avatar has created an ERA solution to meet the challenges of telecoms revenue assurance for both fiscal and telecoms regulatory authorities.

Our high-tech solution—the Airtime Revenue Monitoring System (ARMS)—enables:

controlling all tax transactions related to revenue
monitoring
audits
airtime and mobile money top-up revenues for telecoms

The Avatar ARMS solution is designed for use in multiple tax environments:

telecommunications regulatory authorities who need accurate and complete operator revenue data that can be independently verified
fiscal authorities who must verify and audit the tax declarations of the telecoms carriers
banking regulatory authorities who need appropriate tools to ensure the security and the solvency of mobile banking operations and the collection of forensic data in the battle against cyber fraud and money laundering

Find out how countries have improved their tax collection and tax revenues

17 May 2015

news

Jan

Malawi’s development relies on tax revenues

His Excellency, President Peter Mutharika, has called on all Malawians to always demand EFD receipts […]

Dec

Happy holidays!

We wish all our readers a very happy and wonderful holiday season […]

Nov

Zimra could double VAT collection through automation

The Zimbabwe Revenue Authority (Zimra) is plagued by revenue leakages due mainly to the fact that their systems are not fully automated.[…]

Oct

Digital payment systems drive growth in emerging countries

Many emerging countries are grappling with the challenge of how to modernise their economies, improve transparency, advance financial inclusion and drive sustainable growth […]

Aug

Avatar Technologies can increase revenue in Botswana

Tax compliance is a worldwide issue but it is particularly problematic in emerging countries, where the difference between the tax (VAT) due to the State and what is actually collected is as much as […]

July

E-invoicing Recovers Lost Revenue

It is essential for many developping countries to increase their domestic revenue, hence the need for greater mobilization of revenue […]

July

Burundi’s Revenue Authority Should Increase and Optimise Tax Collection

Tax issues are high on the agenda of African governments. In many of the poorest countries in sub-Saharan Africa, a campaign is being waged to achieve efficient collection and administration of domestic tax revenues […]

July

Reduce Tax Evasion for Economic Growth in Guinea

Tax evasion is one of the major scourges responsible for the impoverishment of the African continent and illegal outgoing monetary flows slow development in Africa down, especially in Guinea […]

June

A new way to catch the informal market in the tax net

In the struggle to increase revenue, African governments are seeking new ways to catch their informal economies in the tax net. This is not surprising as the informal sector contributes about 55 % of sub-Saharan Africa’s GDP and 80% of the labour force […]

June

e-Invoicing – A Sustainable Solution to Ensure VAT Collection

The Togolese Revenue Office (OTR) announced that it is continuing its reforms to combat fraud in all its forms. As part of this campaign, at the beginning of 2015, the standardised invoice was introduced to the Imports Commission […]

May

Additional tax revenue through Avatar Technologies : A solution to finance infrastructure in Africa

The continent has to reply on putting in place infrastructure in order to maintain its economic growth. However, Africa is experiencing a huge financing gap for its infrastructure projects and to solve this Africa needs to opt for mobilising a wide array of sources, in particular increasing its tax revenue […]

May

African countries need to improve tax collection

If Africa is to achieve its sustainable development goals, the continent needs to ensure absolutely no revenue is lost – especially focussing on ensuring no revenue is lost through tax evasion and fraud […]

May

How We Help African Governments Enforce Tax Compliance

Tax compliance is a worldwide issue, but it is particularly problematic in developing and emerging countries, where the difference between the tax (VAT) due to the State and what is actually collected is 50% in-60% […]

Apr

The New Way To Collect Taxes

Tax fraud and evasion are very real issues in African countries […]

Apr

Avatar Technologies Can Reduce The African Debt Pile

Some of the problems exacerbating the debt situation of African countries are their small tax bases, the lack of tax compliance, tax avoidance, and fraud […]

Mar

Mali Advised To Review It’s Tax System

Mali has been advised to improve its tax system in order to finance its economic and social development […]

Feb

Electricity is crucial for development

One of the areas which is crucially important for economic and social development in any country is the energy supply sector. However, economic growth is only possible when the power sector is in line with the national development plans […]

Feb

Boosting development through improved tax collection

Tax collection is an important variable in the complex socio-economic development equation. The more efficient and comprehensive it is, the more likely the equation is to reach the expected result […]

Feb

Avatar Technologies can assist tax authorities with real-time invoicing

In Africa alone, an estimated USD 50 billion is lost each year due to fraud and tax avoidance […]

Jan

Formalizing the underground economy in Romania

Taxes play an essential role in the economy of any country. But emerging countries like Romania are more likely to struggle with budget shortfalls […]

Dec

Avatar Technologies wishes you a Happy New Year!

As 2015 draws to a close, we wish our clients, partners and followers a happy and restful festive season […]

Dec

Financing basic education through taxation

“Education is the most powerful weapon which you can use to change the world”. These words by Nelson Mandela echo far and wide and explain why education ranks so high among the developing world’s priorities. […]

Nov

Ending poverty through effective tax governance

The Millennium Development Goals (MDGs) have reached their deadline this year and the Sustainable Development Goals (SDGs) have now kicked in. Ending poverty is Nº1 among the 17 goals set by the United Nations […]

Nov

The world could lose up to R27 trillion in counterfeiting and piracy

“Criminal activities such as corruption and tax evasion make up 8% of world trade, according to UN Office on Drugs and Crime.”[…]

Nov

Africa’s potential to raise tax revenue from many untapped sources

Africa has the potential to raise tax revenue from many untapped sources on the continent. Countries can increase “their focus on larger tax payers, strengthen tax audits, simplify tax systems and modernize collections.”[…]

Oct

Rwanda’s successful emergence out of conflict and into financial inclusion

Rwanda has managed to successfully emerge out of conflict and has expanded financial inclusion across the nation […]

Oct

Four ways in which Avatar Technologies, a parent company of Global Voice Group, can help governments improve tax collection and boost their development

Insufficient tax collection has been pinpointed as an obstacle to socio-economic development in emerging and developing countries […]

Sept

Avatar Technologies in line with IMF approach on taxation in developing countries

The International Monetary Fund (IMF) encourages developing and emerging countries to implement ways of increasing their tax revenues, in order to support their development.[…]

Aug

Three ways in which Avatar Technologies can help governments reach their development goals

In the wake of the Third UN Financing for Development conference, held in Addis Ababa, Ethiopia on 13-16 July, the quest for innovative ways to allow governments to increase their revenue for development is taking center stage. […]

July

Tackling tax leaks in Africa

ICTs at the service of development: How Avatar Technologies fits into the World Bank’s anti-poverty plan. […]

July

Successful implementation of EFDs

Electronic tax administration is claimed to improve tax compliance and collection. […]

July

Countries worldwide crack down on tax evasion

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

June

Leveraging Africa’s wealth… for Africa

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

Jun

Efficiency requirements for EFDs

Taxation control is a worldwide issue, but an especially critical one for emerging and developing countries, where tax revenues only represent 10% to 14% of the GDP. […]

Jun

Promoting electronic transactions and IT fiscal solutions to reduce the informal economy in developing countries

Developing countries are becoming increasingly aware of the potential of taxation when it comes to strengthening their economy and substantiating their national budget. […]

Jun

Enabling the development of Africa by Africa through increased tax revenue

Over the years, African countries have been relying on international aid to finance their national budget and their development. Financial assistance from developed countries may have been justified at a given time, but its disadvantages now seem to outweigh its advantages. […]

Jun

Shiny, new cars, satellite imagery and loft clearance – the new face of governance

A few weeks ago, Jozef Lazarcik, a Slovak factory worker, won a new car in a national lottery. Big deal, you say. People take home extravagant lottery prizes all the time. But Lazarcik’s lottery win was more than a shiny free ride. […]

17 May 2015

contact

Get in touch

Contact us by completing our contact form. We are available to discuss your specific project needs in greater detail to help find the best solution for you and your business.

CONTACT DETAILS

20 Rua Drive,
Brito Câmara,
Funchal, Portugal,
9000-039

11 May 2015

about

About Avatar

Avatar Technologies Ltd (ATL) provides cutting-edge Electronic Revenue Assurance (ERA) solutions to revenue authorities. Avatar Technologies was founded by Global Voice Group S.A (GVG), technology specialists in financial protection and revenue generation systems since 1998.

Avatar Technologies is directly supported by GVG, and so brings to revenue authorities:

GVG’s many years of experience in providing technology-driven revenue assurance solutions
The expertise resulting from GVG’s track record of approximately 1.5 billion USD over eight years in new revenue generated for governments of emerging countries.

Our Mission

Our mission is to increase domestic tax revenue so as to reduce dependence on foreign aid—creating governments that are empowered, self-reliant, and free from external interference—countries able to determine their own futures. GVG’s many years of revenue-assurance experience in Africa has imbued Avatar (ATL) with a first-hand understanding of:

the use of technology to fight tax evasion
the under-declaration of revenues
fiscal fraud

The introduction of billing systems at the point of sale prevents tax evasion, the under-declaration of revenues and fiscal fraud.

Avatar –Build-Operate-Transfer (BOT) partnership with governments

Avatar Technologies is more than just a world-class provider of anti-sales-suppression solutions.

ATL offers a full turnkey solution and complete infrastructure under build-operate-transfer (BOT) arrangements with governments for long-term partnerships.

This arrangement includes:

fully funded Electronic Revenue Assurance (ERA) infrastructure, including EFD* devices, secure network and all requisite information-management-platform components
100% financing
comprehensive staff and vendor training
technology transfer and in-country support
24/7 in-country customer service support

*EFD (Electronic Fiscal Devices)—devices offering Electronic Billing, Electronic Tax Registers, Sales Register Machines, Sales Data Controllers, Electronic Signature Devices, Fiscal Cash Registers, Fiscal Printers, Certified Invoicing System, Certified Cash Register Systems, Fiscal Data Modules, a Control Unit and other anti-sales-suppression devices prescribed by government.

Find out more about Avatar’s electronic invoicing solution.

11 May 2015

home

Avatar is the only Electronic Fiscal Solution designed to address tax compliance issues successfully in developed and developing countries.

Either on-premise or Cloud-based, Avatar Technologies offers a highly secure solution working in real-time to create an environment to promotes tax compliance. Although tax compliance is a worldwide issue, it is particularly problematic in emerging countries, where the difference between the VAT due the State and the VAT collected is 50% to 60%, compared with 7% to 13% in developed countries.The ‘VAT gap’ in European Economic Community countries was almost €170 billion in 2013.

In Africa alone, an estimated USD 50 billion is lost each year due to fraud and tax avoidance. Taxes due to governments represent 10 times the total aid budget.

Tax evasion and avoidance deprive countries of huge sums that could solve many of their financial and socio-economic problems. Tax fraud is greatly facilitated by the lack of control over sales transactions and by consumer-negligence in the failing to ask for receipts.

Our solution allows countries to leverage their domestic tax resources in order to finance their own development and reduce their dependence on foreign aid.

Avatar is the answer.

Avatar provides governments and revenue authorities with a secure sales and fiscal information platform where:

sales and fiscal data are gathered at the source of the transaction and securely transmitted to government revenue databases in real-time
merchant identities are authenticated prior to the transaction and each receipt is verified through highly secure digital signatures
fiscal information is analysed automatically for accurate and valid decision making by the revenue authorities.

Category: General

news4

news3

Lebanon will meet debt obligations in 2014

Lebanon will meet debt obligations in 2014

EAC seeks $2m supplementary budget

EAC seeks $2m supplementary budget

news2

efdsolution

Benefits of the Avatar ERA solution

The Avatar ERA solution provides

Unique characteristics of the Avatar Electronic Revenue Assurance (ERA) solution

Our Solution offers:

Other benefits of the Avatar Electronic Revenue Assurance Solution:

The Avatar platform

Why the Avatar platform is suitable for any market:

Compliance is easy and value-added services win over the customer.

Avatar’s business approach includes the following benefits and incentives for the taxpayer, facilitating the introduction and imposition of the electronic fiscal declaration network by the authorities:

How Avatar’s Electronic Revenue Assurance (ERA) Solution can be applied to the telecoms industry

The Avatar ARMS solution is designed for use in multiple tax environments:

Find out how countries have improved their tax collection and tax revenues

news

contact

Get in touch

about

About Avatar

Our Mission

The introduction of billing systems at the point of sale prevents tax evasion, the under-declaration of revenues and fiscal fraud.

Avatar –Build-Operate-Transfer (BOT) partnership with governments

This arrangement includes:

Find out more about Avatar’s electronic invoicing solution.

home

Avatar is the only Electronic Fiscal Solution designed to address tax compliance issues successfully in developed and developing countries.

Our solution allows countries to leverage their domestic tax resources in order to finance their own development and reduce their dependence on foreign aid.

Avatar is the answer.

Find out more about our solution.

Please join our Mailing List and win a free copy!