Informal taxation widespread. Formal taxation least trusted. But poor people contribute disproportionately. Following cash transfer programme - Villagers paid almost full value of CT to village leaders. Coercion?
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Riel Franzsen @UPTuks - sets up the dilemmas: transfer tax/stamp duty are high and popular in Africa but can it coexist w CGT? Undermines recurrent property taxes.pic.twitter.com/XP3aDgRUBn
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@surmizes on research in Kenya & Senegal: street level tax collectors accomadate people they perceive as poor or underserviced, with payment plans & exceptions, while strongly taxing land speculators - - could informal practices be turned into policy? Listen to tax collectorspic.twitter.com/1DYVYgPhF4
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Fred Andema on Kampala City's development of data systems to underpin property tax. First w mobile phone pics and then with drones. Reminders by sms. But individual valuation expensive. Developing mass valuation techniques to make it simplerpic.twitter.com/Mfqh2AGdjA
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Justine Knebelmann on collaboration in Dakar - revenue admin, University researchers and software developer to develop property tax system open source android interface for mapping properties & valuation based on external featurespic.twitter.com/LJQCMm53A7
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@MickICTD warns against romanticising local street level collectors - any place where tax is assessed and collected face to face is a recipe for corruption.Show this thread -
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@surmizes responds that should use tax collector experience as data for better designing tax administration - not a participatory approachShow this thread -
And now for something completely different! 2 hours on international tax starting w
@SolPicciotto@Ezenagu@martinhearson & Mike Durst on allocation of MNE income#ICTD19pic.twitter.com/GmCD63tr6F
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Sol is giving the 20 minute history of the international tax system, the ALP, transfer pricing, BEPS, simplified methodspic.twitter.com/S3NlhmghY0
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Brazil uses simple method. No transfer pricing. Two types of company: importing and exporting with fixed margins. Rough justice, but simple to administer.
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@Ezenagu makes the case for safe harbours: secure revenue, reduce cists and uncertainty on both sides, equitable treatment of companies within the covered industriespic.twitter.com/Vfwvzsxzz6
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... And the case against from
@OECDtax: fears of double taxation, breaking ALP. But support from many countries and companies. Now OECD gives cautious, limited supportShow this thread -
Size thresholds for SMEs and small transactions are common, but Africa's large enterprises tend to be smaller. So sectoral safe harbours, sectoral APAs may be useful for most African countries
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Mike Durst suggests a turnover based alternative minimum taxpic.twitter.com/6PmGu03Jmd
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Mike Durst's proposal for a 1% AMT on turnover .... 18 countries do something like this (particularly in Francophone Africa) but many undermine it with low caps on the amount & tax holidays. How is it imposed in practice? http://www.ictd.ac/durst-book pic.twitter.com/a6eqB0UUhK
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@VAdegite supports safe harbours as a good tool. Avoid testing every transaction. Set a safe range e.g. For routine support servicesShow this thread -
Revolution or evolution?
@SolPicciotto say its a waste of capacity to train people up on transfer pricing on OECD method or adopt another short term method on expectation of wider change. Is it cost effective? Alternatives: royalties, telecoms tax, AMT and TP using simple formulaShow this thread -
Mike Durst: would an AMT encourage companies to pay no more than the safe harbour? Yes but companies already seek to lower their taxes. The AMT takes away incentive for tax avoidance
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Q: What's the tax gap? Sol says size of revenue gains is not important, the prize is to reduce the complication of the transfer pricing systems. Would be good for investment certainty
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End of conversation
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