Africa's growing attractiveness as an investment destination is at risk if it fails to strike the right balance between international tax trends and the needs of its varied national economies.
"Africa is a developing continent experiencing unprecedented growth. But realising its potential will, to a large extent, depend on its success in balancing the needs of its developing economies with global realities," says Keith Engel, Africa Tax Policy Leader at EY, commenting on some of the key issues raised at EY's 2013 Africa Tax Conference.
Engel suggests that African governments are largely focused on ways to broaden their tax bases and raise the revenue needed to build infrastructure and fight poverty. The reality is that they currently rely too heavily on customs duties, mineral and petroleum royalties, and donor funding.
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.