International Tax
The International Tax Unit of DRM is responsible for providing technical guidance on tax policy and administration in respect of transfer pricing and other international tax issues.
The technical guidance is provided through capacity building programmes with countries, continental or regional training events, direct audit assistance programmes and legislative support including enacting relevant parts of the OECD Inclusive Framework Two-Pillar solution. This technical guidance has assisted Africa countries in assessing additional tax of more than USD4.5 billion and collecting additional tax of more than USD1.7 billion from their transfer pricing audits in the past eight years.
The International Tax Unit is also responsible for the development of ATAF products which provide home -grown tax policy and administration solutions for African tax systems. These include a number of ATAF Suggested Approaches to drafting legislation in key international tax areas such as transfer pricing, interest deductibility and permanent establishments. To date at least 40 changes have been made in Africa based on the Suggested Approaches which have also been used by developing countries outside Africa.
Exchange of information (EOI) and tax transparency also falls under the International Tax Unit and the Unit provides member countries with the necessary technical assistance on exchange of information with a view to ensuring that countries maximise the benefits of EOI whilst complying with the necessary global standards. The technical assistance includes capacity building on EOI on request, establishing the EOI Unit the use of other forms of mutual assistance measures for revenue mobilisation and support on Automatic Exchange of Information. The section also fosters collaboration amongst African countries through awareness raising on mutual cooperation efforts and its network of competent authorities.
The International Tax Unit also represents the African perspectives in the global tax policy debates and at the standard setting organisations such as the Organisation for Economic Cooperative and Development (OECD) Inclusive Framework and at the United Nations Tax Committee as well as in other multilateral fora. This Unit also prepares and publishes Policy Brief, Technical Notes, Papers and Analysis on International Tax matters to assist members understanding on these issues.