Ghana Integrity Initiative (GII) is the local chapter of Transparency International (TI), the global civil society organization leading the fight against corruption. GII seeks to fight corruption and promote good governance in the daily lives of people and institutions by forging strong, trusting and effective partnerships with government, business and civil society and engagement with people. RECRUITMENT OF A TAX EXPERT TO CARRY OUT A STUDY ON THE DANGERS OF DTAs IN FINANCING DEVELOPMENT IN GHANA: CASE STUDIES OF SOUTH AFRICA & UNITED KINGDOM (UK) DTAs Background:
• Agenda 2063 provides that there must be a principle of self-reliance, with Africa financing its own development. This similar sentiments are echoed in the agenda 2030, which lay emphasis on the importance of the need for domestic resource as a key component in financing development. The efforts for African countries to be self-reliant and finance their development has been a difficult one and full of challenges ranging from tax evasion, tax avoidance to Base Erosion and Profit Shifting (BEPS). This has resulted into over reliance on foreign aid/grants and borrowing/debts by most Africa Countries in financing their development. Foreign aids and debt driven development over the years, has proven to be unreliable and unsustainable.
• The challenges identified above have been linked to a number of issues among which are: poor tax administration systems, inadequate capacity on the various subjects especially poorly drafted and negotiated double tax treaties. Most Double Taxation Agreements adopted in Africa have been negotiated on basis of OECD or/and UN models. It is worth noting that the OECD model was mainly developed with the interest of developed countries in mind whereas the UN models was developed as an alternative that may be adopted by developing countries.
• Considering the opposing interests between the two models, there has been an increased number of inconsistencies in the nature of DTAs that exist within one country and this has contributed to the challenges of implementing these DTAs. In bid to curb some of the aforementioned challenges, Africa Tax Administration Forum (ATAF) has developed a DTA Model that is poised to propose a universal DTA negotiation tool for Africa countries. The proposed model seeks to create a common approach for Africa which is helpful when negotiating with other States .
• With the growing tax treaty network, increasing call for renegotiations of a number of existing treaties in the world and the recent adoption of Multilateral Instrument on tax treaties, the effectiveness of pursuing tax treaties as fiscal policy instrument in Africa has been a mojor concern. The key concerns that arise are that: what is the objective behind signing of such treaties, how such treaties were negotiated and how taxing rights are shared between the participating countries.
• Further, increasing budget deficits in most Africa countries and the need for financing development puts the role of tax treaties signed by various governments under scrutiny. A number of studies have indicated that the structure of existing tax treaties have been propagators of treaty shopping, round tripping, base erosion and profit shifting which have highly affected the various country’s effort to raise the highly sought for revenue to finance development. Countries like Uganda have suspended negotiations of new tax treaties until there are clearer guidelines on how the country should benefit from such agreements . Other countries like Rwanda has resorted to renegotiate some of the existing DTAs with a view of managing the above identified vices.
• It is against this background therefore that TJNA in collaboration with its members SEATINI Uganda, CISLAC Nigeria, Ghana Integrity Initiative Ghana, Policy Forum Tanzania and CTPD Zambia with support from OSF seek to undertake a joint study on the Dangers of DTAs in Financing Development in Africa with case studies of Ghana, Nigeria, Tanzania, Uganda, and Zambia. Objective of the study:
The study will aim at demystifying the policy logic behind increased signing of various tax treaties in Africa when some of the existing agreements have been a subject of abuse and emphasising the need to adopt a harmonised DTA model (where need be) which will take into consideration diversities in the African economies. On this basis the study is geared towards the following objectives:
• To do a critical review of DTAs that Ghana had signed with South Africa and the United Kingdom (UK)
• Analyse the dangers that DTAs pose towards financing development.
• Make policy recommendations on the key consideration that Ghana need to incorporate during the negotiations in line with the proposed best practices like ATAF Model and the recent developments on the MLI. Deliverables:
The consultant will be expected to carry out a study in the respective countries in line with the above objectives. In light of this, the consultant will be expected to:
• Develop a report on the dangers of DTAs on Financing Development in line with the outlined study structure. (Annex I).
• Extract a policy brief from the main report.
• Do a presentation of the research findings and recommendations at a national level launch. Qualification Required & Experience Academic Qualifications and Demonstration of Relevant Experience
• At least a master’s degree in a relevant field in the area of International Taxation, Planning, Public Policy, Development Economics and Tax Law.
• Experience and deep understanding of how DTAs are administered and work in the various markets.
• Evidence of similar work done in the past. Location:
Accra How To Apply For The Job
All proposals should be forwarded by email to: [email protected]
or by post to Ghana Integrity Initiative, PMB CT 317, Cantonments-Accra.
You may also contact Mr Benedict Doh on 0302-760884
for further clarification if the need be. Closing Date:
29 October, 2017