Outdated and ineffective international tax rules combined with a race to the bottom tax competition between countries remain the biggest challenge to enhance Domestic Resource Mobilisation (DRM).Further, the widely tolerated existence of tax havens that offer financial secrecy and low or zero tax rates exacerbates the situation. Companies exploit with ease loopholes in the global tax system to shift profits to jurisdictions with low or zero tax rates severely erode tax bases of developing countries and continues to undermine their efforts to raise domestic revenue. Efforts to reform global tax rules are yet to yield any tangible results. The Organization for Economic Cooperation and Development (OECD) led Base Erosion Profit Shifting (BEPS) project is one such recent effort to redesign international tax rules to protect the tax bases of both developed and developing countries. Our work falls under four thematic pillars:
Tax and International Financial Architecture
The focus of this programme is to deal with the problem of lack of transparency and an effective multilateral system to shape and regulate global financial institutions resulting to the illicit outflow of financial resources from Africa.
Tax and Extractives
Africa accounts for a significant share of the mineral resources in the world. It accounts for 30 percent of global reserves- 90 percent of the world’s platinum, 40 percent of the world’s gold and 46 percent of natural diamonds.
Tax and Inequalities Thematic Programme
As one of TJNA's key tools aimed at promoting the use of progressive taxation systems, the use of pro-poor tax policies, and the strengthening of tax systems to promote domestic resource mobilisation thereby enabling the eradication of inequality and poverty in Africa.
Tax and Investment
Intense debate and concrete policy work is ongoing at the international level on the fiscal contribution of multinational corporations (MNCs) with the focus mainly on tax avoidance – notably in the Base Erosion and Profit Shifting (BEPS) project.