OECD Releases Guidelines to help Tax Administrations respond to COVID-19
African Tax Administration Forum • March 25, 2020
That the Corona Virus (COVID-19) has had a devastating impact of the health of hundreds of thousands around the world is an understatement. But what could be the virus’s greatest impact is its repercussions on the national and global economies. Businesses are filing for bankruptcy, people are losing their jobs and millions amongst the most vulnerable have lost their sources of income. These inestimable damages caused by the pandemic have compelled governments across the globe to adopt drastic measures in an attempt to contain the economic and social impacts.
Indeed, as people and businesses continue to lose their economic power in Africa and the World, Tax Administrations have the daunting task to put in place sound policy measures aimed at relieving the most affected and helping them regain their productive capacity.
To support Tax Administrations in this mission, the OECD has released a number of potential measures that could be adopted by these agencies in response to COVID-19.
The first set of Emergency tax policy responses to the COVID-19
pandemic provides key tax responses that should be considered by Tax Administrations in order to limit the damages to the productivity potential of individual and businesses and protect the vulnerable. Advice in this document includes waiving or deferring employer and self-employed social security contributions and payroll related taxes, providing tax concessions to workers in the health and other emergency-related sectors, providing additional time for dealing with tax affairs etc…
The Second document, the Tax administration responses to Covid-19: support for taxpayers
stresses further the importance of putting in place measures to accommodate taxpayers impacted by Covid-19. These measures include initiative such as deadlines extensions, deferral of payments, remittance of penalties and interests or the suspension of debt recovery to name but a few.
The OECD is working with ATAF and other regional tax bodies to facilitate the sharing of experiences in addressing the tax challenges arising from the COVID-19 pandemic and possibly, developing more specific guidelines to that effect.
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Sources:
- OECD, 2020, Emergency tax policy responses to the Covid-19 pandemic: Limiting damage to productive potential and protecting the vulnerable, viewed 25 March 2020, https://oecd.dam-broadcast.com/pm_7379_119_119695-dj2g5d5oun.pdf
- OECD, 2020, Tax administration responses to Covid-19: support for taxpayers, viewed 25 March 2020, https://oecd.dam-broadcast.com/pm_7379_119_119698-4f8bfnegoj.pdf
During the meeting, both organisations reflected on their long-standing partnership and noted the milestones achieved to date.
Ms. Baine succeeds Mr. Logan Wort , who has served as ATAF’s Executive Secretary since its establishment in 2009.
Les progrès du Bénin en matière d'analyse des données et de prévision ont également été stimulés par d'autres activités d'apprentissage par les pairs de l'ATAF.
At the heart of the discussions was the impact of the toolkits, suggested approaches, policy briefs, and technical notes developed by the committees.
Ms Mary Baine welcomed Minister Mthuli Ncube's pledge to champion tax advocacy on the continent and mobilise his counterparts for support to the African perspectives in the continental and global tax reforms agenda.
The training marked Phase One of ATAF’s broader research development programme, designed to cultivate a new generation of African tax researchers. It provides not just academic instruction, but practical tools for applying research to real-world tax challenges.
The session brought together tax officials from across Africa. Kenya, Nigeria, and Zambia presented their experiences, while Zimbabwe, Sierra Leone, and Burkina Faso officials participated in the peer learning discussions.
ATAF in partnership with the World Bank Group and the Zambia Revenue Authority launched its first technical workshop to jointly design and develop a regional Automatic Exchange of Information IT solution.
This initiative forms part of a broader regional study aimed at supporting African tax administrations in assessing the legal and administrative feasibility of strengthening compliance among individuals with substantial assets.
The ATAF Model Tax Agreement serves as a guiding instrument to help African nations negotiate treaties that better protect their interests, ensure fair allocation of taxing rights, and enhance domestic revenue mobilisation.