Africa Governments Face Quagmire on How to Tax Global Digital Multinational Corporations

According to the Internet World of Stats the African continent is home to 54 African countries with a total human population of 1.26 billion. The number of Africans with access to the internet as a 2018 stood at 525 million ; a huge following vital for deriving advertising revenue, subscription fees for various online services and other revenue got from other online support services.

According to Patrick Mukibi a Tax and Fraud Investigation commissioner for the Uganda Revenue Authority the loss in tax revenue as at 2018 stood at USD 80 Billion ( Ksh 8 Trillion). He was speaking while addressing journalist at Hilton Hotel Nairobi earlier today. In a precursor press conference to the East Africa Revenue Authority Commissioners Tax Investigation Conference. A congregation of Tax investigation commissioners in the East Africa region.

The 7th Pan African Conference on taxation and Illicit financial flows a caucas currently also underway at a Nairobi Hotel bringing together tax experts and top government bureaucrats across the continent is seeking solutions on how to derive tax from these advertising revenue sources from companies like Google, Amazon, Facebook, Twitter, Alibaba et cetra.

Organizations with valuations of over USD 1 Trillion (Amazon) and with the backing of very powerful governments.

According to Madam Uzumma Marilyn Erume; Economic Affairs officer for the Economic Commission for Africa while addressing journalists at the conference during the event called for Unity of Purpose by African governments to make the tax agenda a reality.

Making this a reality will be a hard task considering it is new territory for local tax administrators, considering the fragile legal legilative framework unable rope in the amorphous entities from which justifiction for the tax is to be derived? Avatars!! This is according to Alvin Mosioma Alvin Mosioma, the executive director Tax and Justice Network Africa while also addresing journalists at the press conference.

L-R. Logan Wort( Executive Director Tax Administration Forum, Uzumma Marilyn Erume ( Economic Affairs Officer Economic Commission for Africa), Alvin Mosioma( Tax Justice Network Africa), and Jane Nalunga (Country Director Southern and Eastern Africa Trade Information and Ngotiation Institute)

Image courtesy of Sam Oyugi.