Development of Tax Administrations in Africa to support the Mobilisation of Domestic Resources



Contract partner: ATAF - African Tax Administration ForumCountry: Afrika, regional/länderübergreifend Funding amount: € 300.000,00Project start: 01.01.2018End: 31.12.2020

Short Description:

Overall goal


Improve the capacity of African tax administrations to achieve their revenue objectives, inform policy and legislation formulation, foster transparency and accountability in tax matters, provide a mechanism to contribute to the international developments on tax matters and develop sustainable partnerships in order to achieve these goals.


Expected results


• A more sustainable, member-orientated African organisation on tax matters is further developed. One of the outputs here is to have home-grown standards developed and disseminated

• Efficient and effective African tax administrations are fostered

• Knowledge hub on African tax matters is strengthened.One output here is to have databases of existing knowledge, expertise and products created, maintained and disseminated in a timely fashion

• The regional and global dialogue as the African voice in the field of taxation is informed and influenced.

 


Target group / Beneficiaries


ATAF currently has 38 tax administrations all over sub-Saharan Africa as its members. Among them are also three focal countries of the Austrian Development Cooperation: Burkina Faso, Mozambique and Uganda. These tax administrations and their staff are the target group of this project.


Activities


ATAF serves as an African network that aims at improving tax systems in Africa through exchanges, knowledge dissemination, capacity development and active contribution to the regional and global tax agenda. Improved tax systems will increase accountability of the State to its citizens, enhance domestic resource mobilisation and thereby foster inclusive economic growth.


Context


Strengthening domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection, is one of the targets of the Sustainable Development Goals (17.1).

ADA seeks to further this endeavour by supporting the work of the African Tax Administration Forum (ATAF). ADA’s contribution is based on ATAF’s Strategic Plan for the period 2016 – 2020.


The African Tax Administration Forum is an international pan- African organisation that is providing its members with the most up-to-date activities, technical guidance and creative topics for discussions at a continental level. It also provides a voice for African countries on regional and global platforms and for influencing the international tax debate.

Africa focuses significantly on mobilising domestic resources and tax administration for its development and for achieving the SDGs. Efficient and effective tax administrations help to foster a culture of compliance and participation in the enhancement of the state-citizen relationship. This directly contributes to SDG 16 and 17.


ATAF is based in South Africa. It is financed by the South African Revenue Service, member ship fees and several development partners (pool funders and specific donors). Among them are inter alia, the African Development Bank (AfDB), Finland, Denmark, the Dutch Ministry of Foreign Affairs, the German Agency for International Co-operation (GIZ), Irish Aid and the State Secretariat of Economic Affairs (SECO).

 

project number2802-00/2017
source of fundingOEZA
sector Staatsführung & Zivilgesellschaft, allgemein
tied0
modalityContributions to specific-purpose programmes and funds managed by international organisations (multilateral, INGO)
marker Democracy: 2
  • Policy marker: are used to identify, assess and facilitate the monitoring of activities in support of policy objectives concerning gender equality, aid to environment, participatory development/good governance, trade development and reproductive, maternal, newborn and child health. Activities targeting the objectives of the Rio Conventions include the identification of biodiversity, climate change mitigation, climate change adaptation, and desertification.
    • 1= policy is a significant objective of the activity
    • 2= policy is the principal objective of the activity
  • Donor/ source of funding: The ADA is not only implementing projects and programmes of the Austrian Development Cooperation , but also projects funded from other sources and donors such as
    • AKF - Foreign Disaster Fund of the Austrian federal government
    • BMLFUW - Federal Ministry for Agriculture, Forestry, Environment and Water
    • EU - Funds of the European Commission
    • Others - various other donors are listed in ADA’s annual business report.
  • Type of Aid – Aid modalities: classifies transfers from the donor to the first recipient of funds such as budget support, core contributions and pooled programmes and funds to CSOs and multilateral organisations, project-type interventions, experts and other technical assistance, scholarships and student costs in donor countries, debt relief, administrative costs and other in-donor expenditures.
  • Purpose/ sector code: classifies the specific area of the recipient’s economic or social structure, funded by a bilateral contribution.
  • Tied/Untied: Untied aid is defined as loans and grants whose proceeds are fully and freely available to finance procurement from all OECD countries and substantially all developing countries. Transactions are considered tied unless the donor has, at the time of the aid offer, clearly specified a range of countries eligible for procurement which meets the tests for “untied” aid.