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
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.
CEMAC and ATAF agreed to explore practical avenues for cooperation, including technical assistance, regional training programmes, and platforms for experience exchange.
A key outcome of the training was the heightened awareness among FIRS officials of the critical role data plays in modern tax administration.
The training aimed to strengthen the capacity of tax officials to detect, investigate, and prosecute financial crimes such as tax evasion, money laundering, and illicit financial flows. It focused on practical approaches to financial crime investigation within the tax context.
Mr. Logan Wort emphasized the critical role of taxpayers in fostering economic growth and sustaining public services.
Taxation is a key aspect to increase gender equality since tax is one of the building blocks of society. In particular, it creates domestic resources which are a major source of funding for economic development and empowerment.
ATAF emphasised the importance of harmonised tax systems and advocating for revenue-generation mechanisms that would sustain government finances while fostering trade liberalisation.
ATAF is gearing up for a highly anticipated event: the ATAF Women in Tax Network Leadership Conference. Set to take place in Cape Town, South Africa, on March 5-6, 2025, this conference promises to be a pivotal moment for women in the tax and economic sectors across Africa.
The ATAF Women In Tax Network (AWITN) pledge is a commitment by various countries to adopt a focused, gender-sensitive approach to tax policy and administration.
The workshop aimed to bridge the gap between tax authorities and the media, improving the clarity and accessibility of tax-related information to foster public awareness and boost tax compliance.
