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The African Tax Administration Forum (ATAF) has made efforts to improve tax collection throughout the continent by introducing a new manual on Voluntary Disclosure Programs (VDPs).
This effort aims to help African countries increase their revenue by offering practical resources to promote tax adherence.
The "ATAF Guide on Implementation of Voluntary Disclosure Programmes" provides detailed advice for African tax authorities to create and execute VDPs.
These initiatives offer a structure for taxpayers who have not complied with tax regulations to address their tax matters voluntarily. By promoting the declaration of previously unreported income and assets, VDPs can result in substantial disclosures of foreign assets and a notable rise in tax revenues.
The guide is based on the effective implementation of VDPs in member countries of ATAF such as South Africa, Nigeria, and Kenya.
These examples demonstrate the concrete advantages of VDPs, including better identification of undisclosed foreign assets, a notable increase in tax revenue collection, and the expansion of the formal tax base through enhanced compliance.
The guide provides a "Suggested Approach to Drafting VDP legislation" that African countries can customize to their specific needs. It is meant to be a "straightforward and useful tool" with explanatory notes to help legislators and tax authorities.
The guide covers important considerations for the African context, such as the criteria for participating in VDPs, the duration of the program, and confidentiality protocols.
Mr. Logan Wort, Executive Secretary of ATAF, highlighted the significance of the new guide, stating, "We believe that this guide will be a valuable resource for African tax authorities, enabling them to implement effective VDPs tailored to their individual circumstances."
