Presentation by Sebsbie Fekade, Ansakech Lake and Ronald Waiswa at the second annual meeting of the Ethiopian Tax Research Network, which took place in Addis Ababa on 8th October 2018.
This document provides information about Bilal Qasim Mohammed including his education credentials and work experience. It lists his degrees which include a BSc in Economics, an MSc in Economics with a focus on monetary policy, and professional certificates in public debt management and project management. It also outlines the various jobs he has held over the years including working with NGOs, a university, UNICEF, and currently with the Central Bank of Iraq. The rest of the document appears to cover topics related to fiscal policy, public debt, and debt management.
The document discusses public budgeting and key concepts in federal budgeting. It explains that budgets demonstrate governmental priorities and intentions. The federal budget consists of mandatory spending on entitlement programs as well as discretionary spending debated by Congress. It also discusses deficit versus debt, fiscal policy which refers to taxation and spending, and monetary policy which involves managing interest rates and money supply by the Federal Reserve. Budgets are highly political as they determine winners and losers.
Zero-base budgeting requires managers to justify their entire budgets from scratch each year rather than relying on previous year's funding levels. It involves identifying decision units within an organization, creating decision packages that outline alternative funding levels and their expected impacts, and then ranking the decision packages in order of priority. While ZBB provides more transparency and accountability around funding decisions, it also requires significant effort and resources to implement effectively.
The document discusses various aspects of public debt management. It defines public debt as debt borrowed by the government from the public through various methods. It notes that the Reserve Bank of India formed an internal debt management cell in 1992. Public debt management involves decisions around the form, maturity, and ownership of new and existing debt instruments. The objective is to achieve fiscal and monetary policy goals like inflation control while minimizing interest costs and maintaining investor satisfaction. It discusses different types of public debt instruments and the objectives and principles of effective public debt management.
The document summarizes key aspects of public finance management in Russia, including the budgetary process, public finance control systems, and the breakdown of Russia's 2008 federal budget. The budgetary process establishes government budgets and considers budget implementation. Public finance control promotes efficient government spending and includes oversight of tax collection and debt management. The 2008 federal budget allocated funds across sectors like oil and gas, education, and health care.
The Reserve Bank of India (RBI) is responsible for managing India's public debt, especially debt denominated in the domestic currency. The management of the central government's debt is conducted by RBI under statutory provisions that oblige the central government to delegate its debt management to the RBI.
This document provides an overview of public budgets. It begins by defining what a budget is, including that it is a formal estimate of required resources for a given time period. It then discusses different definitions of budgets provided by various scholars. The document outlines the key components of a budget as public expenditures and public revenues. It also discusses different types of budgets, including operating and development budgets. The document further examines classifications of public expenditures by categories, sectors, general objects, and programs/activities. Finally, it introduces the concept of the canon of public expenditures as rules or principles that governments must follow when incurring expenditures.
Management by Exception (MBE) is a management style where managers only intervene when employees fail to meet performance standards or when problems arise. Under MBE, managers delegate substantially to employees and only take action if metrics fall outside predetermined ranges. This focuses manager attention on important variances. For MBE to work requires an appropriate budget, a matrix defining exception levels and roles, and timely reporting. MBE allows employees autonomy as long as targets are met but risks demotivating staff and assumes budgets are perfect.
This document provides information about Bilal Qasim Mohammed including his education credentials and work experience. It lists his degrees which include a BSc in Economics, an MSc in Economics with a focus on monetary policy, and professional certificates in public debt management and project management. It also outlines the various jobs he has held over the years including working with NGOs, a university, UNICEF, and currently with the Central Bank of Iraq. The rest of the document appears to cover topics related to fiscal policy, public debt, and debt management.
The document discusses public budgeting and key concepts in federal budgeting. It explains that budgets demonstrate governmental priorities and intentions. The federal budget consists of mandatory spending on entitlement programs as well as discretionary spending debated by Congress. It also discusses deficit versus debt, fiscal policy which refers to taxation and spending, and monetary policy which involves managing interest rates and money supply by the Federal Reserve. Budgets are highly political as they determine winners and losers.
Zero-base budgeting requires managers to justify their entire budgets from scratch each year rather than relying on previous year's funding levels. It involves identifying decision units within an organization, creating decision packages that outline alternative funding levels and their expected impacts, and then ranking the decision packages in order of priority. While ZBB provides more transparency and accountability around funding decisions, it also requires significant effort and resources to implement effectively.
The document discusses various aspects of public debt management. It defines public debt as debt borrowed by the government from the public through various methods. It notes that the Reserve Bank of India formed an internal debt management cell in 1992. Public debt management involves decisions around the form, maturity, and ownership of new and existing debt instruments. The objective is to achieve fiscal and monetary policy goals like inflation control while minimizing interest costs and maintaining investor satisfaction. It discusses different types of public debt instruments and the objectives and principles of effective public debt management.
The document summarizes key aspects of public finance management in Russia, including the budgetary process, public finance control systems, and the breakdown of Russia's 2008 federal budget. The budgetary process establishes government budgets and considers budget implementation. Public finance control promotes efficient government spending and includes oversight of tax collection and debt management. The 2008 federal budget allocated funds across sectors like oil and gas, education, and health care.
The Reserve Bank of India (RBI) is responsible for managing India's public debt, especially debt denominated in the domestic currency. The management of the central government's debt is conducted by RBI under statutory provisions that oblige the central government to delegate its debt management to the RBI.
This document provides an overview of public budgets. It begins by defining what a budget is, including that it is a formal estimate of required resources for a given time period. It then discusses different definitions of budgets provided by various scholars. The document outlines the key components of a budget as public expenditures and public revenues. It also discusses different types of budgets, including operating and development budgets. The document further examines classifications of public expenditures by categories, sectors, general objects, and programs/activities. Finally, it introduces the concept of the canon of public expenditures as rules or principles that governments must follow when incurring expenditures.
Management by Exception (MBE) is a management style where managers only intervene when employees fail to meet performance standards or when problems arise. Under MBE, managers delegate substantially to employees and only take action if metrics fall outside predetermined ranges. This focuses manager attention on important variances. For MBE to work requires an appropriate budget, a matrix defining exception levels and roles, and timely reporting. MBE allows employees autonomy as long as targets are met but risks demotivating staff and assumes budgets are perfect.
The document provides an overview of public debt including its definition, history, types and trends in developing countries. It discusses how the role of governments has increased over time leading to rising public debt levels. Developing countries in particular have experienced growing debt burdens due to factors like budget deficits, economic crises, and infrastructure development needs. Prudent management of public debt is important to control costs and risks. The objectives of debt management include meeting government borrowing needs at minimum cost while developing domestic capital markets.
Public finance is concerned with how governments fund activities and administer finances. It involves theories of public revenue (taxes), expenditures, and debt. The objectives of public finance include maintaining order, promoting justice and development. Its main functions are allocation of resources, distribution of income, economic stabilization, and economic growth. Allocation involves determining spending on public goods via the budget. Distribution aims to reduce inequality through taxes and programs for the poor. Stabilization uses fiscal policy to maintain employment and price stability. Growth focuses expenditures on infrastructure to promote higher production and economic expansion.
Quick guide for small and mid sized Non-governmental Organizations' (NGOs'), Civil Society Organizations' (CSOs'), Community Based Organizations (CBOs'), Charities & Causes
Evaluation in Budgeting and Public ExpenditureOECD Governance
Presentation by Ronnie Downes, Budgeting and Public Expenditures Division, OECD, at the 9th Conference on Measuring Regulatory Performance - Closing the Regulatory Cycle: Effective ex post Evaluation for Improved Policy Outcomes which took place in Lisbon on 20-21 June 2017. Further information is available at www.oecd.org/gov/regulatory-policy/measuring-regulatory-performance.htm.
What are the common characteristics of developing countriesTamur Iqbal
Common characteristics of developing countries include: low per capita incomes below $600 per year on average, high rates of poverty, dependence on agriculture as the main occupation, high population growth rates that outpace economic development, and underutilization of natural resources due to a lack of capital and outdated techniques. Many developing countries also face problems like large debts, unemployment, a lack of infrastructure like transportation, and political instability that hinders long-term investment.
The document discusses the public budget process in Palestine. It defines a public budget as a program outlining expected government revenues and expenditures for a fiscal year, which runs from January to December. The budget process involves preparation by ministries, approval by legislative councils, execution by the government, and monitoring. Key parts of the Palestinian public budget include expenditures on salaries, services, and development projects, as well as revenues from taxes, aid, and other sources. Historical budget data from 2009 to 2015 is presented.
MEANING
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
This document discusses controlling as a function of management. It outlines qualities of an effective control system including accuracy, timeliness, flexibility, acceptability, integrity, strategic placement, corrective action, and emphasis on exceptions. It also discusses types of controls including market, bureaucratic, and clan controls. Finally, it examines the control process including establishing objectives and standards, measuring actual performance, comparing results to objectives, and taking corrective action.
Performance management in the public sector aims to improve transparency, accountability, long-term continuity, and strategy execution through better measurement. Key challenges include achieving transparency given cultural and structural barriers, ensuring daily accountability through clear strategic direction and measurement, and maintaining long-term focus despite leadership and administration turnover. An effective performance management system translates strategic plans into measurable goals, aligns budgets and resources to priorities, and allows optimization of resources to deliver public services aligned with stakeholder needs.
Presentation on Principles of Management: Features and Significance of Principles of Management, Principles of Management given by Henry Fayol and Scientific Management given by FW Taylor.
The document discusses public budgeting. It defines what a budget is, including that a budget is a plan for how tax revenues will be spent annually. It describes the Budget and Accounting Act of 1921, which created the Bureau of the Budget (now OMB) and GAO. OMB assists the president in budget preparation and analyzes funding requests. The budget cycle and types of budgets like capital, operating, line-item and performance budgets are covered. The document also discusses budget surpluses, deficits, and discretionary vs entitlement spending.
This document defines and categorizes different types of financial intermediaries. It discusses insurance companies, mutual funds, non-banking finance companies, investment brokers, investment bankers, escrow companies, pension funds, and collective investment schemes. The main advantages of using financial intermediaries are that they help reduce costs compared to direct lending/borrowing, and help reconcile the conflicting needs of lenders and borrowers to prevent market failure. Financial intermediaries play a vital role in bringing together those with surplus funds to lend and those with shortage of funds to borrow.
The document summarizes performance budgeting approaches used by several US states and municipalities. It discusses how states like Arizona, Maryland, Texas, Virginia, and Washington incorporate performance measures and information into their budget processes. It also provides examples of performance budgeting efforts in the cities of Long Beach, California and Maricopa County, Arizona, describing the key components of their managing for results initiatives.
This document outlines the process of developing a new chart of accounts for a government. It discusses key principles like moving from cash-based to accrual-based accounting and being compliant with international standards. It also covers developing the coding structure, including the different classification segments. Issues with the current chart of accounts are identified. The document recommends defining the path to accrual accounting and improving aspects like the functional classification, economic classification, and addressing asset/liability accounting. Implementation requires clarifying the accounting system's policy and upgrading its capabilities.
Financial Analysis and Types of Financial AnalysisNEETHU S JAYAN
The document discusses financial analysis, which involves critically examining financial statements to understand a firm's financial position and performance. Financial analysis identifies strengths and weaknesses by establishing relationships between balance sheet and income statement items. It has several objectives, including providing reliable financial information to assess a firm's profitability, financial position, and ability to meet obligations. Financial analysis can be conducted internally or externally and has various types depending on the materials used, methodology, entities involved, and time horizon considered. Its limitations include potential to mislead users or make wrong judgments if not done properly.
The document discusses public expenditures by governments. It notes that public expenditures are reflected in national budgets and indicate a government's economic and social priorities. Developing countries tend to prioritize education spending to invest in human capital development. While public expenditures have increased due to factors like inflation, population growth, and infrastructure projects, they are necessary to support social services for large populations and address issues like peace and order. When evaluating public expenditures, both economic and social impacts should be considered, with priority given to programs that improve conditions for the poor masses and promote social justice.
The document summarizes key concepts from chapter twelve of Mankiw's macroeconomics textbook on aggregate demand in an open economy. It introduces the Mundell-Fleming model and its assumptions. It shows how fiscal and monetary policy impact the economy differently under floating versus fixed exchange rates. Specifically, fiscal policy is powerful under fixed rates but monetary policy is powerful under floating rates. It also examines the effects of changes in the exchange rate, interest rates, money supply, and price levels in the Mundell-Fleming model framework.
The document discusses the budget process in India, which involves 4 stages: preparation, enactment, execution, and parliamentary control. It outlines the key agencies and stages involved in the preparation of the budget, including the formulation of estimates by various ministries and departments. It then explains the constitutional provisions and stages for enactment, including presentation to Parliament, general discussion, scrutiny by committees, and voting on demands for grants. Finally, it discusses how the budget is executed once passed, through allocation of funds to ministries and departments for approved projects and auditing of accounts.
This paper which I presented at a training program provides invaluable input into the concept, principles, features of Public Sector Reforms. It also explores the role of international organisations in PSR.
Ethiopia has experienced strong GDP growth over the last decade. To maintain this growth, the government is pursuing goals in its second Growth and Transformation Plan including agriculture, industry, infrastructure, human development, and good governance. Domestic resource mobilization is challenging but important to fund development and achieve SDGs. Tax collection represents the largest source of DRM in Ethiopia but faces issues like tax evasion. International tools like TADAT can help strengthen Ethiopia's tax administration through better compliance, enforcement, and governance. Ethiopia still needs to improve political commitment, fairness, transparency, human and technical capacity, and address illicit financial flows to boost its domestic resource mobilization.
The document discusses the importance of the public sector as a taxpayer segment for the Uganda Revenue Authority (URA). It notes that the public sector was previously largely ignored as a taxpayer, with few inspections, audits, or debt collection. To address this, URA established a Public Sector Office (PSO) in 2014. The PSO cleaned the public sector taxpayer register, increased education and awareness efforts, and improved monitoring of tax flows. As a result, revenue collections from the public sector grew substantially, increasing 193.9% from 2014/15 to 2015/16 and an additional 105.7% from 2015/16 to 2016/17. The success of the PSO is attributed to management support, engagement with government
The document provides an overview of public debt including its definition, history, types and trends in developing countries. It discusses how the role of governments has increased over time leading to rising public debt levels. Developing countries in particular have experienced growing debt burdens due to factors like budget deficits, economic crises, and infrastructure development needs. Prudent management of public debt is important to control costs and risks. The objectives of debt management include meeting government borrowing needs at minimum cost while developing domestic capital markets.
Public finance is concerned with how governments fund activities and administer finances. It involves theories of public revenue (taxes), expenditures, and debt. The objectives of public finance include maintaining order, promoting justice and development. Its main functions are allocation of resources, distribution of income, economic stabilization, and economic growth. Allocation involves determining spending on public goods via the budget. Distribution aims to reduce inequality through taxes and programs for the poor. Stabilization uses fiscal policy to maintain employment and price stability. Growth focuses expenditures on infrastructure to promote higher production and economic expansion.
Quick guide for small and mid sized Non-governmental Organizations' (NGOs'), Civil Society Organizations' (CSOs'), Community Based Organizations (CBOs'), Charities & Causes
Evaluation in Budgeting and Public ExpenditureOECD Governance
Presentation by Ronnie Downes, Budgeting and Public Expenditures Division, OECD, at the 9th Conference on Measuring Regulatory Performance - Closing the Regulatory Cycle: Effective ex post Evaluation for Improved Policy Outcomes which took place in Lisbon on 20-21 June 2017. Further information is available at www.oecd.org/gov/regulatory-policy/measuring-regulatory-performance.htm.
What are the common characteristics of developing countriesTamur Iqbal
Common characteristics of developing countries include: low per capita incomes below $600 per year on average, high rates of poverty, dependence on agriculture as the main occupation, high population growth rates that outpace economic development, and underutilization of natural resources due to a lack of capital and outdated techniques. Many developing countries also face problems like large debts, unemployment, a lack of infrastructure like transportation, and political instability that hinders long-term investment.
The document discusses the public budget process in Palestine. It defines a public budget as a program outlining expected government revenues and expenditures for a fiscal year, which runs from January to December. The budget process involves preparation by ministries, approval by legislative councils, execution by the government, and monitoring. Key parts of the Palestinian public budget include expenditures on salaries, services, and development projects, as well as revenues from taxes, aid, and other sources. Historical budget data from 2009 to 2015 is presented.
MEANING
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
MEANING
DEFINITION
CLASSIFICATION OF PUBLIC EXPENDITURE
CAUSES FOR THE GROWTH OF PUBLIC EXPENDITURE
This document discusses controlling as a function of management. It outlines qualities of an effective control system including accuracy, timeliness, flexibility, acceptability, integrity, strategic placement, corrective action, and emphasis on exceptions. It also discusses types of controls including market, bureaucratic, and clan controls. Finally, it examines the control process including establishing objectives and standards, measuring actual performance, comparing results to objectives, and taking corrective action.
Performance management in the public sector aims to improve transparency, accountability, long-term continuity, and strategy execution through better measurement. Key challenges include achieving transparency given cultural and structural barriers, ensuring daily accountability through clear strategic direction and measurement, and maintaining long-term focus despite leadership and administration turnover. An effective performance management system translates strategic plans into measurable goals, aligns budgets and resources to priorities, and allows optimization of resources to deliver public services aligned with stakeholder needs.
Presentation on Principles of Management: Features and Significance of Principles of Management, Principles of Management given by Henry Fayol and Scientific Management given by FW Taylor.
The document discusses public budgeting. It defines what a budget is, including that a budget is a plan for how tax revenues will be spent annually. It describes the Budget and Accounting Act of 1921, which created the Bureau of the Budget (now OMB) and GAO. OMB assists the president in budget preparation and analyzes funding requests. The budget cycle and types of budgets like capital, operating, line-item and performance budgets are covered. The document also discusses budget surpluses, deficits, and discretionary vs entitlement spending.
This document defines and categorizes different types of financial intermediaries. It discusses insurance companies, mutual funds, non-banking finance companies, investment brokers, investment bankers, escrow companies, pension funds, and collective investment schemes. The main advantages of using financial intermediaries are that they help reduce costs compared to direct lending/borrowing, and help reconcile the conflicting needs of lenders and borrowers to prevent market failure. Financial intermediaries play a vital role in bringing together those with surplus funds to lend and those with shortage of funds to borrow.
The document summarizes performance budgeting approaches used by several US states and municipalities. It discusses how states like Arizona, Maryland, Texas, Virginia, and Washington incorporate performance measures and information into their budget processes. It also provides examples of performance budgeting efforts in the cities of Long Beach, California and Maricopa County, Arizona, describing the key components of their managing for results initiatives.
This document outlines the process of developing a new chart of accounts for a government. It discusses key principles like moving from cash-based to accrual-based accounting and being compliant with international standards. It also covers developing the coding structure, including the different classification segments. Issues with the current chart of accounts are identified. The document recommends defining the path to accrual accounting and improving aspects like the functional classification, economic classification, and addressing asset/liability accounting. Implementation requires clarifying the accounting system's policy and upgrading its capabilities.
Financial Analysis and Types of Financial AnalysisNEETHU S JAYAN
The document discusses financial analysis, which involves critically examining financial statements to understand a firm's financial position and performance. Financial analysis identifies strengths and weaknesses by establishing relationships between balance sheet and income statement items. It has several objectives, including providing reliable financial information to assess a firm's profitability, financial position, and ability to meet obligations. Financial analysis can be conducted internally or externally and has various types depending on the materials used, methodology, entities involved, and time horizon considered. Its limitations include potential to mislead users or make wrong judgments if not done properly.
The document discusses public expenditures by governments. It notes that public expenditures are reflected in national budgets and indicate a government's economic and social priorities. Developing countries tend to prioritize education spending to invest in human capital development. While public expenditures have increased due to factors like inflation, population growth, and infrastructure projects, they are necessary to support social services for large populations and address issues like peace and order. When evaluating public expenditures, both economic and social impacts should be considered, with priority given to programs that improve conditions for the poor masses and promote social justice.
The document summarizes key concepts from chapter twelve of Mankiw's macroeconomics textbook on aggregate demand in an open economy. It introduces the Mundell-Fleming model and its assumptions. It shows how fiscal and monetary policy impact the economy differently under floating versus fixed exchange rates. Specifically, fiscal policy is powerful under fixed rates but monetary policy is powerful under floating rates. It also examines the effects of changes in the exchange rate, interest rates, money supply, and price levels in the Mundell-Fleming model framework.
The document discusses the budget process in India, which involves 4 stages: preparation, enactment, execution, and parliamentary control. It outlines the key agencies and stages involved in the preparation of the budget, including the formulation of estimates by various ministries and departments. It then explains the constitutional provisions and stages for enactment, including presentation to Parliament, general discussion, scrutiny by committees, and voting on demands for grants. Finally, it discusses how the budget is executed once passed, through allocation of funds to ministries and departments for approved projects and auditing of accounts.
This paper which I presented at a training program provides invaluable input into the concept, principles, features of Public Sector Reforms. It also explores the role of international organisations in PSR.
Ethiopia has experienced strong GDP growth over the last decade. To maintain this growth, the government is pursuing goals in its second Growth and Transformation Plan including agriculture, industry, infrastructure, human development, and good governance. Domestic resource mobilization is challenging but important to fund development and achieve SDGs. Tax collection represents the largest source of DRM in Ethiopia but faces issues like tax evasion. International tools like TADAT can help strengthen Ethiopia's tax administration through better compliance, enforcement, and governance. Ethiopia still needs to improve political commitment, fairness, transparency, human and technical capacity, and address illicit financial flows to boost its domestic resource mobilization.
The document discusses the importance of the public sector as a taxpayer segment for the Uganda Revenue Authority (URA). It notes that the public sector was previously largely ignored as a taxpayer, with few inspections, audits, or debt collection. To address this, URA established a Public Sector Office (PSO) in 2014. The PSO cleaned the public sector taxpayer register, increased education and awareness efforts, and improved monitoring of tax flows. As a result, revenue collections from the public sector grew substantially, increasing 193.9% from 2014/15 to 2015/16 and an additional 105.7% from 2015/16 to 2016/17. The success of the PSO is attributed to management support, engagement with government
1) The document discusses a collaborative research project between the Uganda Revenue Authority (URA) and external researchers to analyze high-net-worth individuals (HNWIs) in Uganda and improve tax compliance among this group.
2) It finds there are many potential HNWIs in various economic sectors in Uganda who have high incomes but pay little in personal income taxes. These include individuals in finance, real estate, professional services, and public sector roles.
3) While Uganda has legal and administrative structures like anti-avoidance rules and a penalty regime to tax HNWIs, there are still weaknesses like low tax collection overall, a large informal sector, and political influences that enable non-compliance among elite taxpayers.
The document provides an overview of Nepal's tax system, including definitions of direct and indirect taxes, objectives of taxation, concepts of income and income tax, history of income tax in Nepal, features of the Income Tax Act of 2058, and details about taxation of companies and individuals. Some key points include: direct taxes are paid directly to the government on income, while indirect taxes can be passed on to consumers; objectives include raising revenue, redistributing wealth, and encouraging national industries; and income tax was first introduced in Nepal in 2017 but the current Income Tax Act of 2058 aims to simplify and modernize the system. Corporate tax rates vary from 20-30% depending on the industry, and individuals are taxed on worldwide income
The document discusses issues with Pakistan's current tax system and proposes reforms. It notes that the complex tax regime creates difficulties for businesses and discourages foreign investment. The system includes many withholding taxes that increase costs and are not present in peer countries. It is proposed that Pakistan establish an independent national tax authority to simplify laws, coordinate between federal and provincial authorities, and recruit tax officials through a single civil service. The goal is to establish a new social contract with taxpayers by making compliance less burdensome and growing the formal economy.
The document discusses various international taxation issues such as tax avoidance by multinational corporations and tax evasion by wealthy individuals that exploit gaps in international tax frameworks. It also examines factors that enable tax evasion like secrecy laws in tax havens and the failure of certain tax policies, as well as strategies used like shifting profits to low-tax jurisdictions and treaty shopping. Finally, the document proposes reforms to Pakistan's tax system to make it fairer and boost tax collection.
Ronald Waiswa, ICTD Researcher, and Supervisor: Research and Policy Analysis, Uganda Revenue Authority Research, Planning and Business Development Division
Monica Tumerkunde, Supervisor, HNWI Unit, Uganda Revenue Authority Research, Planning and Business Development Division
Tax justice from 100 years old income tax law.pdfM S Siddiqui
Roughly 94 per cent of income-tax revenue comes from tax deducted at source. The Tax deduct as source (TDS) has been imposed at border during release of imported goods and services, supply of goods and services to government and corporates entities. This deduction is on gross sales value but not on net profit. The advances taxes are non-refundable and considered as tax on income. In many cases the tax burden are more than 100 percent of the net income of the business enterprises.
The document discusses issues with Turkey's tax system. It notes that tax burdens fall heavily on salaried workers, tax laws are overly complicated and frequently changing, and an large unrecorded economy has developed where taxes are often evaded. Some of the key reasons for tax evasion include high tax rates, lack of taxpayer awareness about tax obligations, unfair distribution of the tax burden, and lack of trust that tax revenues will be spent properly by the government. Reforms are needed to simplify tax laws, increase tax administration capabilities, and gain taxpayers' trust in order to strengthen the tax system.
Functional Tax Governance Apparatus and Economic DevelopmentDr. Amarjeet Singh
The proportion of tax earnings to gross domestic
product (GDP) in Nigerian economy had been ranked and
affirmed the least in the sub-Sahara African and as
evolving economy, different reasons attested to this fact,
hence, the study is aimed at investigate the inherent lacuna
of tax governance apparatus in responses to economic
development as broad objective. The study employed field
research design, the research instrument that was deployed
for collection of data is purposive and structured
questionnaire targeted at elicit information from relevant
and related stakeholders in tax matters, the research
instrument and data collected were subjected to Cronbach
alpha test and heteroscedasticity test to affirm the
validity/reliability and best linear unbiased estimator of
data collected respectively. The result revealed that the
responsiveness of economic development to tax assessment,
tax policy and tax administration were statistically
significant inversely related while tax collection was
statistically insignificant related directly with economic
development. Thereby study concluded that poor
management and administration of tax system in Nigeria
responsible for adverse relationship that subsist between
the proportion of tax earnings to GDP and resulted
decayed and declined physical infrastructures and socioeconomic development.
The document discusses India's indirect tax system. It provides an overview of key indirect taxes like sales tax, service tax, customs and excise duties. It notes that the indirect tax system has undergone extensive reforms in recent decades to meet international competition requirements. Some key reforms discussed include the introduction of VAT and efforts to integrate indirect taxes. The document also provides details on the introduction and growth of service tax in India as well as implications and issues with indirect taxes.
Deterrent tax measures and tax compliance in nigeriaAlexander Decker
This document summarizes a study that examines the effects of deterrent tax measures on tax compliance in Nigeria. It begins with an introduction that outlines the importance of taxes in generating government revenue. It then reviews Nigeria's existing tax policies and reforms, discussing the country's tax administration system. The study uses a regression analysis of survey responses to test hypotheses about the relationship between deterrent tax measures and compliance. The analysis finds that Nigeria's existing deterrent measures are inadequate and have not promoted compliance. It also finds that fostering voluntary compliance and taxpayer morale would enhance tax compliance. The study recommends that Nigerian revenue authorities adopt approaches to encourage voluntary compliance and appropriately sanction defaulters.
The document summarizes issues with Pakistan's taxation system and proposals for reform. It finds that Pakistan collects only 13% of GDP in taxes, the lowest among emerging economies. This limits funding for health, education, and other services. Major problems include extensive tax exemptions estimated to lose 3-4% of GDP annually, weak tax administration vulnerable to corruption, and a narrow tax base with only 2% of the workforce paying income tax. The document recommends phasing out exemptions, increasing autonomy and accountability of revenue agencies, and broadening the tax base through better enforcement and reducing the tax compliance burden. Reforms aim to increase tax collection to 15% of GDP by 2018 to improve services and economic stability.
Presentation by Dr. Nyah Zebong Asaah at the Urban Age “Developing Urban Futures” conference in Addis Ababa on November 30th, 2018.
Watch his presentation on YouTube: https://youtu.be/e3eJjouc4mc
The document discusses reforms that could be made in Pakistan's upcoming budget to create a fairer tax regime and support private enterprise. It notes that Pakistani firms currently face over 50 different taxes, fees, and surcharges. The complex tax system increases business costs and prevents new startups. The budget could simplify taxes by reducing rates and types of direct taxes. It could also reform indirect taxes based on proposals to reduce compliance costs and harmonize taxes across provinces. The budget needs to balance the tax burden across sectors and provide relief on agricultural inputs. Reforming tax administration and increasing autonomy of revenue authorities could also improve the business environment. Public-private consultations on tax policy should be strengthened.
The document provides an introduction to a study on tax evasion in Bangladesh. It begins by outlining how developing countries like Bangladesh face challenges in establishing effective tax systems compared to developed countries. This leads to issues like tax evasion that reduce the amount of revenue collected.
The document then notes that tax is the primary source of government revenue in Bangladesh but there remains a gap between expenditures and tax collections. This gap has increased in recent years despite rising tax revenues. One major reason for this is tax evasion among taxpayers.
Finally, it provides the background, objectives and limitations of the study, which aims to identify factors influencing tax evasion in Bangladesh and find solutions to reduce it. The study collects secondary data from various
ax Evasion is a illegal way of reducing tax. Developing countries like Bangladesh loses huge amount of taxes because of tax Evasion. Government loses about 2 billion taxes from Multinational industries in Bangladesh. It is said that 200 multinational companies have been working in Bangladesh.
Similar to Practices, Challenges and Prospects of Public Sector Taxation in Ethiopia (20)
Presentation on data challenges and collaboration relating to the e-Levy in Ghana.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation of study on the impact of the mobile money tax on the usage, demand, and perception of mobile money services of Micro and Small Enterprises (MSEs) in Tanzania.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation on a study aiming to highlight significant events relating to the introduction of the e-levy in Ghana and investigate the effects.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation on the Transaction Cost Index Study, a multi country study exploring the costs consumers face when making mobile money transactions, with research in Tanzania, Bangladesh and Uganda.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation on a study investigating the impact of mobile money taxes on mobile money agents. The researchers have analysed the impact of the new 0.2% tax on mobile money transactions in Cameroon implemented on January 1, 2022 on agents’ survival, profitability, sustainability, and future strategies.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation of a study looking into the increasing use of electronic payment technologies in low-income countries (LICs), with a particular focus on the use of mobile money in Ghana. The study evaluates the effectiveness of tax exemptions for incentivising businesses and customers to adopt digital merchant payments, and shaping their perceptions of the tax system.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward"
Presentation on a Comparison of Taxation of DFS Versus Traditional Financial Services in Nine African Countries.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward
Presentation on a study that investigated the intricate dynamics surrounding the implementation and reception of mobile money taxes, focusing on Ghana as a case study.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward"
Presentation on digital merchant payments as a medium for tax compliance at the Rwanda Revenue Authority Quarterly Research Workshop.
Access the related paper 'Digital merchant payments as a medium for tax compliance' at: https://shorturl.at/GS029
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Hosted by the United Nations Capital Development Fund (UNCDF), Better Than Cash Alliance is a partnership of more than 80 governments, companies and international organizations that accelerates transition from cash to responsible digital payments to help achieve the Sustainable Development Goals.
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Practices, Challenges and Prospects of Public Sector Taxation in Ethiopia
1. Practices, Challenges and Prospects of Public
Sector Taxation in Ethiopia
October 8, 2018
Capital Hotel & Spa, Addis Ababa-
Ethiopia
Sebsbie Fakade, Asnakech Lake & Ronald
Waiswa.
ETRN
2. Table of Contents
1
5
3
4
2
Introduction
Why focus on the public sector?
Objectives of the study
Methods
Findings
Lessons from Uganda and
Nigeria?
6
7
The Enablers for sucessful PSO
3. Introduction
• The public sector includes all government institutions (Public
Budgetary Institutions, Public Business Enterprises)
• According to many countries’ Tax laws, Government and all
its agencies (MDAs) are taxpayers and usually “large
taxpayers”
• However, African revenue authorities perceive enforcing tax
laws on government bodies as they do for other taxpayers as
a very difficult or even an impossible undertaking.
• Even in tax literature, the concept of treating government
as a taxpayer is a new idea.
• Tax compliance initiatives largely target private sector
taxpayers. In the end, a lot of tax revenue gets lost within
government entities.
4. Why focus on the public sector?
Low tax collections
o Tax to GDP ratio has stagnated at less than 13% as compared to the average 19.1% for
African countries and over 25% in emerging economies
o Government expenditure to GDP (over 19%) is far higher than the tax to GDP
o ERCA has over the years failed to meet its collection targets.
Government is a big spender
o The service sector (largely run by government) is second largest contributor to GDP
(41%) next to agriculture at 45%.
o State-owned enterprises enjoy monopolies and other advantages in the most important
sectors such as finance, communications and trade logistics and hence dominates the
growth process of the country, (IMF 2013).
The non-compliance of government entities will directly lead to non-
compliance of other taxpayers specifically government service providers.
In Uganda, where the revenue authority specifically singled out this group of
taxpayers, there are significant returns.
It’s counterproductive for government to break its own tax instructions.
5. Objectives of the study
i. Ascertaining the tax compliance levels of the PBIs and PBEs in Ethiopia.
ii. Examining the effectiveness of these institutions as tax withholding
agents.
iii. Analysing the ERCA administrative and legal strength and challenges in
handling tax affairs relating to government institutions
6. Methodology
Interviews
• Tax administration
officials
LTO, MTO East Oromiya ,
Addis Ababa City
Revenue
• Officials from PBIs
and PBES
ERA, MOE, MOH, EPPPA
, ERA,ERC, ESLSE
• Officials from other
revene agencies (URA
& FIRS)
• SIGTAS- Filing history
of PBI, VAT
withholdings by PBI,
• MOFEC - GDP,
Government
expenditure data,
National budget
• Domestic tax laws
• Academic articles;
• Internal ERCA
reports
• Other countries
focusing on public
sector
• URA
Experiences
• FIRS
Secondary data
matching
Textualanalysis Other countries
7. Findings
1. Low tax compliance
Tax compliance of government institutions particularly in Africa is very low.
Characterised with low levels of filing, late tax payments, non payments, gross under
declarations- Many withhold and fail to remit to revenue agencies
In the Ethiopian case, the compliance chain is half met.
PBIs and PBEs are fairly compliant with filing tax returns with over 70% of
them filing it on time as indicated below.
12.4% 13.8%
28.1%
33.1%
27.8% 25.4% 25.3%
87.6% 86.2%
71.9%
66.9%
72.2% 74.6% 74.7%
2010 2011 2012 2013 2014 2015 2016
Fig 1: Filing Status of Public Budgetary Institutions and Public Business
Enterprises
late filers as % on time filers
8. Findings
Ethiopia PBIs specifically as it is with other countries are
however
• Under declaring- Every time an audit is carried out on some of government
agencies, inconsistencies in their declarations are discovered and more revenue
generated
• Do not remit the withheld tax- some withhold taxes but fail to pay
• Some do not even withhold- VAT withholding not implemented up to Woreda
level
• Some have a tendency to include three or even six months in one return instead of
filing each transaction in the next month after the transaction has occurred.
• PBIs specifically have mistrustful tax remittances- Characterised with
sharp increments and decreases over time e.g for sales tax (TOT), in 2012, only
475.95 million Birr were remitted and this sharply grew by 119.2% in the next year
to 1,043.29 million and then sharply dropped to 862.08 million.
• Same inconsistence patterns are realised in VAT
9. Findings….
2. Government entities as withholding tax agents
• They contribute averagely 46% of all VAT collected
annually through the withholding system
• However, these entities don’t have the capacity to verify
the authenticity of the renewed business license, tax
clearance certificates and VAT registration certificate
submitted to them by their service providers before
contracts are awarded- Due to lack of system integration
• They also have less care for their tax obligation
• Some have many branches, and these use the headquarter
TIN which makes it difficult to trace transactions for the
different branches
10. Findings….
3) There are a number of inefficiencies at ERCA in the
administration of withholding taxes
I. A Malfunctioning e-filing and e-payment system. the system has frequent break
downs or very slow especially during the due dates for return filing when all
taxpayers are fighting to meet the deadlines.
II. Low levels of automation of tax services and lack of interface with other
government systems. Currently, there is no system at the ERCA that is interfaced
with government entities making it difficult to obtain tax related information
from third parties.
III. Limited sensitizations on how to use the e-filing system and amendments in the
tax regulations.
IV. Unsatisfactory service rendered. Staff from PBIs and PBEs stated that ERCA staff
create an impression to be feared and that sometimes they either take long or
even fail to provide answers to their questions.
11. GOOD NEWS
•The provisions of Federal Income Tax
Proclamation No 983/ 2016; Council of
Ministers Regulations 2016 ; provide a
strong frame work for taxing public
institutions.
•Penalties for non compliance for both
the institution and the persons
responsible
•However, its one thing to have a strong
the law and another to implement it-
Legal Framework
ADMINISTRATIVE WEAKNESS
•Tax enforcement on PBIs
and PBEs is perceived as a
very difficult or even an
impossible undertaking
•ERCA largely concentrates on
private taxpayers
•Very few PBIs are audited for
compliance.
•VAT withholding is not
implemented up to Woreda level
12. Does the ERCA need a specialised Public Sector Office?
• YES.
• Supported by both tax officials and staff from PBIs & PBEs
• But its operations need to be decentralised given their wide spread
• Should not be placed in LTO or MTO
Why not in LTO or MTO or even STO?
Their nature and operations is very different from the private
sector businesses.
Handling their tax affairs require different skill sets such as
knowledge of public sector management/accounting and an
ability to negotiate with public officials.
A focus on both extremes - private businesses engaged in
complex tax planning on the one hand and the much less complex
but severely non-compliant public sector on the other hand - is
stretching to staff especially those in LTO
13. Why not in LTO or MTO or even STO?........
I. They need high quality tax service that addresses their problems and meets their
expectations. ERCA needs to handle them the way businesses enterprises handle
their clients-providing a service that makes them feel that they are needed and
highly treasured.
II. They contribute significantly and have the potential to even contribute more
revenue. For VAT that is withheld, averagely 46% is withheld by government
agencies. The public entities in LTO contribute close to 49% of the LTO tax
collections.
III. A point for more information gathering on other taxpayers. At present, there are
no mechanisms to receive real time information from these entities on other
taxpayers. Therefore, it’s currently very difficult to track transactions between
government and the private sector yet the government is perhaps the biggest
consumer in the country. Failing to track the flow of this money is a huge risk. A
separate office will ensure that all government service providers are profiled well.
14. Lessons from Uganda’s PSO
Operationalized in 2014
Since its establishment in 2015, the PSO has registered
significant success.
In the financial year 2015/2016, revenue collected by
the PSO grew by 194% over the previous year. In
2016/17, it increased by 106%.
The PSO is now the second largest contributor to
domestic tax collection in Uganda, after the LTO.
Its revenue share as a percentage of total domestic
revenue collections grew from only 5% in financial
year 2014/15 to 17% in 2016/17
15. The Enablers for a successful Government tax office
• ERCA needs to embrace and have the
will and boldness to improve the
compliance of government entities
• ERCA needs to win the support of the
different government entities
• High ranking government officials could
also tell these agencies the harsh
penalties such as
terminating the contracts of the
leaders
not allocating or cutting budgets to
any non-compliant agency.
• communication,
interpersonal skills and
flexibility
• To those where soft skills
are not yielding,
enforcement mechanisms
should be applied.
• Not all non-compliance is deliberate.
• staff cannot use the ERCA systems or
they don’t even know how to do it right
• Sensitization of the key officials in these
agencies on areas that are difficult for
them to comply should be done
• The sensitizations should be escorted
with continuous follow ups through
short message service (SMS), emails,
phone calls and physical visits.
Internal and external
support from high
ranking officials
Separating government entities from other taxpayers wont be enough on its own, its
needs a number of enablers
Soft skills rather
than enforcement
Taxpayer education
and sensitisations