The African Union Commission (AUC) and the African Tax Administration Forum (ATAF) have agreed to strengthen cooperation on tax policy and administration to improve domestic revenue mobilisation across Africa.
The agreement was reached when an ATAF delegation led by its council chair, Johnston Makhubu, met with Francisca Belobe, AUC Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, at the African Union headquarters in Addis Ababa.
The organisations discussed the implementation of African tax instruments and technical tools, including the Agreement on Mutual Assistance in Tax Matters (AMATM), which allows tax authorities to exchange information, assist in tax collection and conduct joint tax examinations.
The AU said the mechanism was expected to help African countries tackle cross-border tax evasion, illicit financial flows and aggressive tax practices.
The statement also highlighted the ATAF Model Double Taxation Agreement, which provides a framework for countries negotiating tax treaties while seeking to protect their taxing rights.
Belobe encouraged ATAF to deepen engagement with the private sector, saying greater participation by businesses in tax policy and compliance discussions could improve voluntary compliance and broaden the tax base.
She also called for continued efforts to improve tax revenue collection and strengthen national fiscal systems through cooperation under the specialised Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration (STC-FMAEPI).
The AUC and ATAF also agreed to continue addressing tax challenges in extractive industries and other hard-to-tax sectors, particularly issues involving valuation, cross-border transactions, specialised contracts and access to information.
The two institutions are expected to finalise the renewal of their memorandum of understanding and develop a work plan covering tax policy and administration, treaty matters, mutual assistance, private-sector engagement and taxation of strategic sectors.
