Overcoming Cultural and Political Barriers to a Whole-of-Government Approach to Countering Illicit Financial Flows in Africa

by | Aug 6, 2026 | AMTJ, AMTJ 2026 I1

Overcoming Cultural and Political Barriers to a Whole-of-Government Approach to Countering Illicit Financial Flows in Africa

Author: Bernd Schlenther & Jeffrey Owens

ISSN: 2709-8575
Affiliations: Senior Lecturer at the African Tax Institute (ATI), Faculty of Economic and Management Sciences, University of Pretoria; Former Director at the Global Tax Policy Centre (GTPC), Institute for Austrian and International Tax Law, Vienna University of Economics and Business (WU), Austria
Source: African Multidisciplinary Tax Journal, Volume 6, Issue 1 (2026), p. 143–168
https://doi.org/10.47348/AMTJ/V6/i1a7

Abstract

Inter-agency cooperation is made possible by overcoming legal, operational and political barriers, and success can be measured in the manner in which agencies decide to work together. Once legal barriers to cooperation have been removed, key implementation questions arise for participating agencies. Often these relate to overcoming operational and cultural barriers. By adopting a qualitative literature-review and policy-analysis methodology relying on academic literature, international organisation reports, legal-policy documents and selected African case examples, cultural, operational and political barriers to inter-agency cooperation in countering illicit financial f lows are identified. The analysis is used to develop a risk-assessment framework for improving inter-agency cooperation to address IFFs through a whole-of-government approach. The article provides a conceptual and normative approach to improved inter-agency cooperation using various mechanisms such as risk assessments, leadership, trust-building, governance structures, and institutional and policy reforms. The article offers clear policy recommendations and suggestions for implementation at operational and policy level.

Corporate Taxation in Senegal: Reform and Tax Avoidance

by | Aug 6, 2026 | AMTJ, AMTJ 2026 I1

Corporate Taxation in Senegal: Reform and Tax Avoidance

Authors: Luisito Bertinelli, Arnaud Bourgain, Seydi Ababacar Dieng & Jean-Paul Diagne

ISSN: 2709-8575
Affiliations: University of Luxembourg; University of Luxembourg; LAREM, University Cheikh Anta Diop, Dakar; LAREM, University Cheikh Anta Diop, Dakar
Source: African Multidisciplinary Tax Journal, Volume 6, Issue 1 (2026), p. 169–196
https://doi.org/10.47348/AMTJ/V6/i1a8

Abstract

This paper examines corporate income taxation in Senegal using firm-level data from the Agence Nationale de la Statistique et de la Démographie (ANSD), covering nearly the entire formal private sector for the period 2008–2019. This study uses firms’ effective tax rates (ETRs) to assess the actual corporate tax burden and identify the main determinants of tax avoidance. Particular attention is paid to the effects of the 2013 tax reform. Empirical results show that ETRs increased overall after the 2013 reform but declined for large firms. These findings are robust across alternative specifications and measures of effective taxation. The results support a review of tax incentives and exemptions, particularly those benefiting large and export-orientated firms.

Non-resource Tax Revenue and Mining Rent Sharing in Africa

by | Aug 6, 2026 | AMTJ, AMTJ 2026 I1

Non-resource Tax Revenue and Mining Rent Sharing in Africa

Author: Kalo Achille Sanou

ISSN: 2709-8575
Affiliations: Université Clermont Auvergne, CNRS, IRD, CERDI, F-63000 Clermont-Ferrand, France
Source: African Multidisciplinary Tax Journal, Volume 6, Issue 1 (2026), p. 197–216
https://doi.org/10.47348/AMTJ/V6/i1a9

Abstract

This paper investigates the effect of gold rent-sharing on non-resource tax revenues in 19 African gold-producing countries over the period 2009–2020. The study uses the average effective tax rate (AETR) as a de jure measure of the government’s share of gold rents and employs a panel smooth transition regression (PSTR) model to account for potential non-linearity in the relationship between AETR and non-resource tax revenue. The results reveal a non-linear effect with a single transition threshold, defining two regimes. In the first regime, AETR has a positive and statistically significant effect on non-resource tax revenues, while in the second regime, its effect becomes negative and remains significant. The estimated thresholds differ according to mine grade, reaching 53.24% for low-grade mines, 49.31% for medium-grade mines, and 33.36% for high-grade mines. These findings suggest that the taxation of gold rents should be calibrated according to mine characteristics: increasing the AETR beyond the estimated thresholds may undermine tax revenue mobilisation from non-resource sectors. Therefore, policymakers should consider mine grade when designing mining tax regimes to balance the capture of resource rents with the preservation of domestic tax revenue from other sectors.

Dynamic Effects of Risk-Based Tax Audits: Evidence from Rwanda

by | Aug 6, 2026 | AMTJ, AMTJ 2026 I1

Dynamic Effects of Risk-Based Tax Audits: Evidence from Rwanda

Authors: Hannah Moreno; Naphtal Hakizimana; Orodha Iranzi and Annabel Manley

ISSN: 2709-8575
Affiliations: Tax Policy Analyst, Rwanda Revenue Authority; Principal Professional in Charge of Research and Policy Analysis, Rwanda Revenue Authority; Professional in Charge of Research and Policy Analysis, Rwanda Revenue Authority; Tax Policy Analyst, Rwanda Revenue Authority 
Source: African Multidisciplinary Tax Journal, Volume 6, Issue 1 (2026), p. 217–236
https://doi.org/10.47348/AMTJ/V6/i1a10

Abstract

This study examines the impact of risk-based tax audits on future compliance behaviour. Using administrative data from the Rwanda Revenue Authority (RRA) on nearly 9 000 domestic tax audit cases between 2018 and 2024, the study applies an adapted difference-in-differences methodology for multiple treatment periods. The study finds that tax audits are associated with significant decreases in reported tax declarations in the years following an audit, even as the tax authority’s assigned risk scores decline. These patterns suggest that taxpayers may reduce their reported declarations after being audited, despite appearing less risky to the administration. Taxpayers who incur higher audit penalties exhibit even sharper drops in declarations post-audit, alongside increases in their assigned risk scores. These results are primarily driven by taxpayers identified as non-compliant during their audit, consistent with a loss-repair mechanism in which taxpayers may under-declare in an effort to recover audit-related financial losses. However, the findings are not limited to non-compliant taxpayers: even those who faced no penalties experience a temporary decline in declarations up to two years post-audit before returning to prior levels. This broader pattern suggests that some taxpayers may engage in short-term under-reporting due to a perceived reduction in the likelihood of being audited again soon. Taken together, these dynamics indicate that tax audits may reduce reported declarations in some contexts – even among initially compliant taxpayers, albeit temporarily – and that changes in taxpayer behaviour may not always be reflected in tax administration risk profiles.

Potential of Tax Resources in WAEMU Member States: Estimating the VAT Gap and Its Determinants

by | Aug 6, 2026 | AMTJ, AMTJ 2026 I1

Potential of Tax Resources in WAEMU Member States: Estimating the VAT Gap and Its Determinants

Author: Isaac Amedanou

ISSN: 2709-8575
Affiliations: Université Clermont Auvergne, CNRS, IRD, CERDI, Clermont-Ferrand, F-63000, France
Source: African Multidisciplinary Tax Journal, Volume 6, Issue 1 (2026), p. 237–271
https://doi.org/10.47348/AMTJ/V6/i1a11

Abstract

This article focuses on the estimates of the VAT gap in WAEMU member states using the ‘top-down approach’. The study conducted econometric analysis to assist in understanding the nature and causes of the VAT gap, and to identify country-specific characteristics that appear related to different levels of the VAT gap. The VAT gap is the difference between the theoretical VAT liability and the VAT actually collected, expressed in relative terms as a share of theoretical VAT liability. Across all member states, the overall VAT gap stood at 68% in 2006 and declined, on average, by approximately 7 percentage points to 61% by 2015. At the country level, the estimated VAT gap ranges from 37.7% in Togo to 64.9% in Côte d’Ivoire. Econometric analysis, using panel corrected standard errors, robust OLS regression and IV methods, was conducted to identify the factors that explain the different levels of the VAT gap. Two variables were found to have the strongest relationship with the level of the VAT gap. The VAT gap share increases with the final consumption ratio-to-GDP of households and non-profit institutions serving households. Second, when the VAT burden – measured as the ratio of theoretical VAT liability to GDP – is included as a candidate explanatory variable, we find a significantly positive association with the VAT gap. However, we identify the risk that this estimated correlation could be biased by measurement errors in the estimation of the theoretical liability. After accounting for this risk through IV regression, we find a negative and significant relationship with the VAT gap.

Assessing Excise Tax Gaps in Zambia: Unlocking Revenue Potential for Fiscal Sustainability

by | Aug 6, 2026 | AMTJ, AMTJ 2026 I1

Assessing Excise Tax Gaps in Zambia: Unlocking Revenue Potential for Fiscal Sustainability

Authors: Evaristo Mwale, Ezekiel Phiri & Kelvin Mpembamoto

ISSN: 2709-8575
Affiliations: PhD; Zambia Revenue Authority, Lusaka, Zambia; Department of Economics, University of South Africa (UNISA), Pretoria, South Africa; Zambia Revenue Authority, Lusaka, Zambia; Zambia Revenue Authority, Lusaka, Zambia
Source: African Multidisciplinary Tax Journal, Volume 6, Issue 1 (2026), p. 272–294
https://doi.org/10.47348/AMTJ/V6/i1a12

Abstract

Zambia faces persistent fiscal pressures that require stronger domestic resource mobilisation. Although the tax-to-GDP ratio stood at 17.3% in 2020, excise duty performance remains below potential. Excise taxes contributed 1.1% of GDP and 8.1% of total revenue, but collections have been volatile, with declining yields from cigarettes, motor vehicles and hydrocarbon fuels, pointing to underlying structural and administrative challenges. This study applies a tax gap approach to assess excise performance from 2016 to 2020 using national statistics data and tax administration data. While overall excise gaps are below 1% of GDP, significant gaps appear in soft drinks, non-alcoholic beverages and tobacco. Compliance issues, especially in the soft drinks industry, have worsened since 2019, with over 70 million litres not captured in the tax net. The study recommends broadening the tax base, introducing ad valorem rates, and adopting automatic indexation to enhance revenue and strengthen excise duty sustainability.