Joint ATAF – EC – URA Technical Conference on Exchange of Information & tax Treaties

Kampala, Uganda19 - 20 April 2012

African Tax Administration Forum (“ATAF”)Presenter: Mr Ali Ssekatawa

(Chairman ATAF Information and Tax Treaties Working Group AND Assistant Commissioner Litigation – URA)

“Deliverables and Products developed by the Exchange of Information & Tax Treaties Working Group”

1

ATAF EOI PROJECT

Challenges faced by African Countries:

2

Lack of treaties as instruments for exchange of information in several African countries. Lack of communication as to who are designated Competent Authorities as only point of contact for requests for exchange of information between countries and / or regular updateson any changes.

Inadequate legislation and regulatory framework to ensure availability of information for exchange purposes.

Ineffective legislation to ensure access to information for exchange purposes.

Lack of capacity and capability in some tax administrations to deal with requests for exchange of information.

Limited participation by ATAF member countries in the Global Forum on Transparency andExchange of Information for tax purposes.

ATAF EXCHANGE OF INFORMATION PROJECT (Cont.)

Role of EoI Working Group: To develop strategies and products for, and give direction to, the work of the Exchange of Information Project with regard to:

• assisting ATAF members with developing their domestic legal and regulatory frameworks for transparency and exchange of information on tax matters;

• assisting ATAF members with developing legal mechanisms to allow for effective cross-border exchange of information; and

• enabling tax officials of member countries to build technical capacity to effectively exchange information with partner countries.

ATAF members requested to nominate relevant senior officials in their respective administrations to serve as members of the ATAF Exchange of Information Working Group.

3

Composition of the Working Group

R. C. Terblanche – SOUTH AFRICA Ali Ssekatawa – UGANDA Samuel Aboge – KENYA Adekunle Ogundare – NIGERIA Ehshan Jannoo – MAURITIUS Moussa Ndoye – SENEGAL

TECHNICAL ADVISORS Ron Van Der Merwe – Member of UN Advisory Group Yanga Mputa – Assessor on Global Forum for Transparency and

Exchange of Information

COORDINATORS Femi Edgal – Nigerian official seconded to the ATAF Secretariat Elizabeth Storbeck – ATAF Secretariat

Meetings held

Work Methodology

Work Methodology (cont.)

The Working Group has identified eleven (11) key deliverables as target priority areas for the next 2 years with set timelines.

At least 2 members are allocated 2 deliverables to manage as a lead team and report their findings to the Working Group in consultation with the Technical Advisors.

The Working Group reviews the work of the lead team, in consultation with the Technical Advisors, and comes up with a joint paper for presentation to the ATAF Council. Approved recommendations are then implemented by the Secretariat.

Work Plan

No DELIVERABLES PROGRESS

1. Recommendation to Council re adoption of Internationally Accepted Standards of Transparency and Exchange of Information by ATAF members

Recommendation approved by Council in April 2012 Document will be forwarded to all members for implementation – supported by Practical Guide

2. Investigate possibility of facilitating a Multilateral Treaty on Exchange of Information for ATAF members

Recommendation approved by Council in April 2012 Secretariat will facilitate a 3-day meeting, mid-year, to be attended by each members’ tax treaties expert as well as their lawyers.

Work Plan

No DELIVERABLES PROGRESS

3. Recommendation to Council re participation by ATAF member countries in the OECD Global Forum on Transparency and Exchange of Information

Recommendation approved by Council in April 2012 ATAF Members of GF:

South Africa Botswana KenyaGhana Seychelles LiberiaMauritius Morocco Nigeria

Secretariat will forward letter to all members re Council’s approval, supporting membership of GF

4. Draft recommendations to Council of facilitating multiparty negotiations for ATAF members

Recommendation approved by Council in April 2012 Model TIEA Agreement will be forwarded to members for consideration Global Forum Meeting on 17-21 October 2012 will be a good opportunity for Guernsey, Jersey and Isle of Man to conduct negotiations with members.

Work Plan

No DELIVERABLES PROGRESS5. Circulate questionnaire to ATAF members

for purposes of conducting a country survey on EoI  Thereafter, WG to develop appropriate programmes for each country ito:• Technical assistance• Training• Recommendations for domestic legislative/policy changes

Questionnaires sent to all ATAF member Countries in November 2011. Only 8 responses received from:

Kenya Lesotho Madagascar Mauritius Seychelles UgandaZambia Zimbabwe

Questionnaire is an abridged version of Peer Review Process. Completion will enable ATAF to assist the member prior to review. Members can request technical assistance from ATAF Technical Assistance Unit (TAU)

6. Establish data base on tax treaties and tax information exchange treaties

Secretariat is consulting with an IT developer to upload the database of tax treaties

Work Plan

No DELIVERABLES PROGRESS

7. Establish database on Competent Authorities (Delegated authorised representatives) of ATAF members

Letters of request sent to all ATAF countries. 11 have responded so far :

Kenya Liberia MadagascarMalawi Mauritius Sierra Leone Zambia Uganda Seychelles Namibia South Africa

Secretariat will send out reminders to each member to update their details of Competent Authority (Delegated authorised representatives)

8. Formation of ATAF Tax Information Exchange Panel and formulation of process for receipt and process of enquiries

31 May – draft Roadmap and Terms of Reference for the panel to be submitted; 15 June – responses received from WG; 30 June – final document submitted to Secretariat

Work Plan

No

DELIVERABLES PROGRESS

7. Regular contribution to ATAF newsletter

Ongoing as articles regularly submitted to the Secretariat Contributions welcomed from all members

8. WG to agree on the tax treaty/tax information exchange programme for 2012

Technical conference for April 2012 Development of model DTA: By end August, final model will be forwarded to Council for approval

Challenges

All Working Group members have office assignments with a busy schedule which compromises the work output.

Slow response to questionnaires and / or requests for information from member countries.

GOOD NEWS The time lines undertaken in the Work Plan have been met

and all deliverables are on course. The Working Group members and Secretariat are

committed.

ASANTE

Thank youEnjoy your stay in Kampala