TAXATION AND THE ROLE OF

INTERMEDIARIESGroup Four

Tax Intermediaries: Defined

• These are professionals (individual or firms) qualified in taxation and they are charged with the role of providing advice to tax paying entities with regard to their tax obligations(OECD). They also assist in preparing tax returns • Professionals who help tax payers understand and

comply with tax regulations

The position of intermediaries in the tax process

TAX PAYERS

INTERMEDIARIES

TAX AUTHORITIES

Examples of Tax intermediaries

• Lawyers• Accountants • Investment Banks • Advisory agencies (PWC, Delloite and Touche, KPMG, EY, etc) and Tax Consultants

Classical assignments of tax intermediaries•Due diligence (Prior to acquisition or investiment)• May be a legal obligation but commonly voluntary

• Tax compliance• Normally involves book keeping and filing tax returns • Can be done by accountant (May seek professional opinion)

• Tax audit• Tax advisory services

Classical assignments of tax intermediaries•Tax audit• Comprehensive investigation to inform the level of

tax risk of an entity • Helps identify exposure points

•Tax advisory services • Tax recommendations to identify gray areas in

regulations, changes over tax regimes and past rulings in similar cases

Professional standards and legal obligations of tax intermediaries•Three categories • Local standards • Regional standards (EAC, ECOWAS, EU)• International standards

•Auditing standards (IFAC)•Accounting standards (ICPAU, IASB)•Tax regulations (Acts, Bye laws, decrees, policies etc)

Thanks for listening

Siku Njema