ABA International Africa Section – Challenging Risk Perception in Africa – tax is the biggest business risk in Africa
Why is tax one of the biggest business risks in Africa, that interlinks with corruption?
Corrupt officials and governments use the desperately needed tax funds for social uplifting and development in a corrupt manner. This places more pressure on the fiscus to collect more taxes. MNEsWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... then start facing ambitious, but often wrong tax assessmentsA tax assessment is a formal determination made by a tax authority to calculate the amount of tax an individual or entity owes. It is a comprehensive evaluation based on financial records, declared income, expenses, deductions, and any applicable tax laws or regulations. Tax assessments may arise from routine self-assessments by taxpayers, or they may be conducted by revenue authorities... to fill the demand for more taxes. This places strain on foreign offshore MNEsWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... to reconsider their investments into Africa, because their returns are eaten up by wrongful tax charges, particularly in:
- the wrong application of transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... principles;
- ignoring tax treatyA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... provisions when imposing withholding tax charges;
- subjecting foreign expertise into Africa to VAT charges, which are counter-productive and discriminatory;
- failing to adhere to the principles of free trade imposed by the World Trade Organization – GATT & GATS, when imposing WHT and VAT, and not just customs and excise taxes.
For more information, visit the sponsor desk of TRM Daniel Erasmus Tax Court Practitioners at the conference in Cape Town, 21/22 May at the Radisson Blu Hotel.
Prof. Dr. Daniel N. Erasmus will be in attendance and ready to answer any questions and concerns you may have. He has lectured and advised many postgraduate students (in advisory positions and business) and MNEsWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... in Africa on these issues.
Tel: +27 83 458 8422
BROCHURE ABA International Africa Section – Challenging Risk Perception in Africa
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