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Taxation As Catalyst For The African Renaissance

12 November 2012   (0 Comments)
Posted by: Author: Neil Wright
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Taxation As Catalyst For The African Renaissance

The African Renaissance concept,popularised as part of the post apartheid intellectual agenda, was first articulated by Cheikh Anta Diop in a series of essays beginning in 1946, collected in his book Towards the African Renaissance: Essays in Culture and Development, 1946-1960. Diop wrote the series of essays as a student, charting the development of Africa.

Among other things, the African Renaissance is a philosophical and political movement to end the violence, elitism, corruption and poverty that seem to plague the African continent, and replace them with a more just and equitable order.

One of the most pressing issues on the African continent is the dependence on foreign assistance and indebtedness. As Africans we need to focus on boosting tax revenues through broad-based taxation. Experience has shown that this will lead to more predictable revenue collection and meet the developmental agenda of the continent.

It will also help to ensure that aid-funded investments are sustainable and prepare for the gradual exit from aid in the long term.Most taxable capacity in Africa tends to be concentrated in a small group of taxpayers. As a result, individuals and companies with power and influence deploy aggressive tax-planning techniques. However, the majority of taxpayers do not have the means to reduce their tax liability. In addition their taxable capacity is low and costly to collect, especially in rural areas.The result is that the middle class and mid-sized companies carry most of the tax burden.

The 21st century has begun with some serious challenges facing the global community. This has contributed to a significant change in the role of professionals, especially in the current difficult economic environment. It is in this environment that Africa faces its own special challenges regarding governance and sustainable State-building, of alleviating poverty, sustainability and development through improved tax compliance.It is incumbent on tax professionals to take responsibility for developing a healthy relationship between their clients and revenue administrations, and for providing the necessary technical guidance and support for the creation of a satisfactory tax compliance culture.

The year 2011 saw South Africans lead the development of tax within Africa. The African Association of Tax Institutes (AATI) was formed and is the continent-wide forum for tax professional bodies. SAIT played an influential role and made a significant contribution to the tax profession and the African continent, as co-founder of the forum and our chief executive,Stiaan Klue, was elected as the vice-president. South African Commissioner, Oupa Magashula was elected to lead the 29 participating members of the African Tax Administration Forum held in April 2011.

Taxation is central to the development agenda of African states. Resource mobilisation is the financial bedrock on which sustainable, long-term development is built. The raising of tax revenues is arguably the most central activity of any state. Revenue from taxation is what sustains the existence of the state and provides the necessary financial resources for social and economic infrastructure. Taxation is the administrative heart of government and provides the funds to supply public goods and implement effective regulation.

As African tax professionals, we have a duty to contribute to the development of the African continent. We should therefore build relationships with all stakeholders and contribute to the efficiency of the tax collection system. We are proud to participate in the African Renaissance.

Source: By Neil Wright/chairman of SAIT board (TaxTalk)


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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