A project to improve audit capacities and ensure multinationals observe local tax laws in Africa has proven to be successful. Since June 2015, the Tax Inspectors Without Borders (TIWB) project has netted millions of euros of additional tax incomes.
The TIWB project focuses on tackling tax avoidance by improving local audit capacities, with a particular emphasis on ensuring multinationals conform with local tax laws. In Zimbabwe alone, the program generated €96 million of additional state income by tax audits.
The Guardian reports that the TIWB is successful in helping countries to recover revenue from multinationals that had been paying less than their fair share. The program, carried out in partnership with the African Tax Administration Forum, also seeks to build local audit capacity. The programme is supported by the Organisation for Economic Co-operation and Development (OECD) and the UN development programme (UNDP).
In the program’s next step, a team of tax experts from Kenya will be deployed to Botswana to help boost domestic revenue collection to fund national development plans. Other projects are carried out in African countries such as Ethiopia, Ghana, Lesotho, Liberia, Malawi, Nigeria, Uganda, Zambia and Zimbabwe. Next year, auditors will be sent to the Republic of the Congo, Egypt, Uganda and Cameroon.
Further reading on The Guardian