2ND ATAF CONSULTATIVE MEETING OF AFRICAN COMPETENT AUTHORITIES
CONCEPT NOTE

1. INTRODUCTION
In a globalised world, the exchange of information on tax matters is of paramount importance if individual tax administrations are to achieve their targets of increasing domestic resource mobilisation. With the onset of liberalised economies and increasingly relaxed exchange controls, movement of capital and investments across borders have become a daily reality and tax administrations on the African continent must devise means of finding out information on tax transactions by taxpayers in other jurisdictions which they may have no control over.

Evidently, African countries tend to trade more with the rest of the world than they do with one another. Hence the exchange of information with the rest of the world becomes crucial if sufficient information and data are to be obtained that will lead to more taxes being collected. For this to materialise, African tax administrations need to establish competent authorities within their revenue bodies that will handle this sensitive sector.

2. THE CURRENT EOI LANDSCAPE
During the recently held meeting organised by the Global Forum on Tax Transparency in Accra, Ghana from 25th to 26th July 2018 at which ATAF was well represented, it was vivid that most African countries with the exception of South Africa and Uganda still lag behind in terms of EOI and in the establishment of competent authorities within their tax administrations. It is clear that the infrastructure deficit remains a key challenge coupled with the necessary legal framework. At times, EOI is viewed as an extra burden in terms of costs and unnecessary diversion from their core focus of revenue collection. Overcoming these perceptions is part of the motivating factors driving ATAF to hold a consultation regarding the role of Competent Authorities and EOI in general. Therefore, the consultation taking place in Lomé, Togo from 4 – 5 October 2018 will go a long way in consolidating a common understanding and ensuring that exchange of information in ATAF countries becomes the number one priority of tax administration. This is with the backdrop of the now vigilant step in Country by Country Reporting(CBCR), at the global level, as an agreed standard to ensure different jurisdictions share information that informs the different interested parties.

3. OBJECTIVES OF THE CONSULTATION
The objective of the competent authority meeting will, therefore, focus on the following areas;
  • The current status of EOI units/competent authorities in different tax administrations. 
  • Underscore the urgent need for the full functioning of EOI units within tax administrations; and how fast these can be established where absent
  • Examine the challenges of establishing EOI units and how these challenges can be mitigated. 
  • Reiterate role that ATAF continues to play in propelling the EOI in general and the establishment of Competent authorities in particular within tax administrations especially in providing members with tools and technical support.
  • Establishment of an efficient mechanism through which ATAF and tax administrations can regularly exchange information on EOI units progress and drawbacks.
4. STRUCTURE OF THE COMPETENT AUTHORITY MEETING.
The meeting will be conducted through presentations and debates. There will be different sessions discussing various topics related to EOI, and these will include the following;
  • New global challenges facing African countries in EOI Landscape.
  • The status of EoI on the global arena;and how should Africa best engage?
  • How best should African countries fully utilise the EOI mechanism?
  • The role of the ATAF technical committee on EOI/AEOI and technical assistance programme. Is this relevant to member needs
  • Global context on EOI and new developments on the African Continent.
  • Benefits of competent authority in transfer pricing audits 
  • The rise of mutual assistance procedures in Africa and the role of the competent authority.
5. VENUE OF THE COMPETENT AUTHORITY MEETING
The meeting will take place from 4 – 5 October 2018.  

6. EXPECTED OUTCOME OF THE MEETING  
• Confirmation of the mandate for ATAF to continue giving guidance on EOI/AEOI activities on the African Continent
• Agree on a time frame in which all ATAF member countries will have established full-fledged EOI units within their tax administrations.
• Enhanced cooperation with the African countries in ensuring that EOI takes centre stage
• Establish a roadmap on how best to support the ATAF member countries in adjusting to global EOI standards.
• Increased coordination of policy and administration decisions to ensure African countries benefit both from ATAFs EOI initiatives.