The Africa Tax Review - Page 3 of 14 - Tax updates across Africa, simplified

Addis Ababa’s Revenue Surges 800% in Seven Years Without Tax Hike

February 20, 2025February 20, 2025 - by Jeremiah Amosu - Leave a Comment

Mayor Adanech Abiebie has announced a staggering eightfold increase in Addis Ababa’s revenue over the past seven years, attributing the growth to improved tax administration and compliance rather than tax …

WESTERN AFRICA

Ghana to Scrap Betting Tax in 2025 Budget

February 20, 2025February 20, 2025 - by Jeremiah Amosu - Leave a Comment

Ghana’s government has announced plans to abolish the controversial 10% betting tax in the upcoming 2025 budget, fulfilling a key campaign promise of the National Democratic Congress (NDC). Minister Confirms …

EASTERN AFRICA

Rwanda Announces Major Tax Increases for 2025 Fiscal Year

February 19, 2025February 19, 2025 - by Jeremiah Amosu - Leave a Comment

The Rwandan government has unveiled a series of tax hikes set to take effect in the 2024/25 fiscal year, targeting multiple sectors to boost revenue and align with economic policy …

SOUTHERN AFRICA

Budget Delays in South Africa Over VAT Hike

February 19, 2025February 19, 2025 - by Jeremiah Amosu - Leave a Comment

South Africa’s national budget presentation was postponed on Wednesday due to a dispute between the country’s two largest ruling coalition parties over a proposed increase in Value-Added Tax (VAT). The …

British American Tobacco Kenya (BAT Kenya) has denied claims of financial discrepancies amounting to KSh 9.6 billion (US$ 93 million) following a recent investigative report that scrutinized the company’s tax records. The report, titled Missing Millions: A Cross-Examination of British American Tobacco Kenya’s Tax Bill, was published by The Investigative Desk in collaboration with the Tobacco Control Research Group (TCRG) and Tax Justice Network Africa (TJNA). According to the findings, BAT Kenya may have underreported revenue between 2017 and 2018, potentially leading to a tax shortfall of approximately US$ 28 million. Allegations of Tax Discrepancies The report is based on an in-depth analysis of BAT Kenya’s financial disclosures over six years. Researchers cross-examined the company’s annual reports with production records submitted to the Kenya Revenue Authority (KRA), internal government documents, and market data on cigarette consumption and pricing. Investigators allege a gap of KSh 9.6 billion between BAT Kenya’s declared revenues and estimated earnings based on production and sales data. This shortfall suggests that millions of cigarette packs may have been either unaccounted for or underreported, raising concerns about possible tax avoidance or evasion. “This report should be a wake-up call for Kenyan authorities. If these discrepancies remain unexplained, they could indicate potential tax manipulation,” said Kennedy Waituika, a fraud and internal audit expert. Kenya Updates Tax Exemption Rules for Charitable Organisations BAT Kenya’s Response In a statement, BAT Kenya’s Managing Director, Crispin Achola, dismissed the allegations, asserting that the company fully complies with Kenya’s tax laws and financial reporting standards. “We have thoroughly reviewed the report and found it to be largely speculative, containing numerous errors and misrepresentations of BAT Kenya’s operations,” Achola stated. He emphasized that as a publicly listed company on the Nairobi Securities Exchange, BAT Kenya adheres to strict financial disclosure requirements and publishes audited financial statements in line with both local regulations and international reporting standards. Claims of Miscalculations BAT Kenya further criticized the report, arguing that the authors relied on incorrect assumptions when calculating the company’s revenues, profits, and tax obligations. The company claims the report failed to consider deductible costs, applied incorrect cigarette pricing, and disregarded applicable trade margins. Growing Scrutiny on Tobacco Industry Taxation The allegations come at a time when governments worldwide are increasing scrutiny on the tobacco industry’s tax practices, particularly in low- and middle-income countries. Tax experts argue that multinational tobacco firms often employ complex corporate structures and transfer pricing mechanisms to minimize tax liabilities, depriving governments of much-needed revenue for public health initiatives. As the debate continues, the findings of the report may prompt further investigations by tax authorities and policymakers into BAT Kenya’s financial practices. The outcome could have significant implications for corporate taxation and regulatory oversight within Kenya’s tobacco industry.

EASTERN AFRICA

BAT Kenya Refutes KSh 9.6 Billion Tax Discrepancy Allegations

February 18, 2025February 18, 2025 - by Jeremiah Amosu - Leave a Comment

British American Tobacco Kenya (BAT Kenya) has denied claims of financial discrepancies amounting to KSh 9.6 billion (US$ 93 million) following a recent investigative report that scrutinized the company’s tax …

WESTERN AFRICA

Nigeria’s FIRS Moves Forward with Binance Tax Evasion Trial

February 18, 2025February 18, 2025 - by Jeremiah Amosu - Leave a Comment

The Federal Inland Revenue Service (FIRS) has commenced the trial of cryptocurrency exchange platform Binance over alleged tax evasion in Nigeria. Court Proceedings Begin On Monday, February 17th, 2025 FIRS …

SOUTHERN AFRICA

Democratic Alliance Opposes Potential Tax Hikes in South Africa

February 17, 2025February 17, 2025 - by admin - Leave a Comment

South Africa’s Democratic Alliance (DA) has voiced strong opposition to any proposed tax increases, following reports that the finance ministry is considering additional levies to address the country’s fiscal challenges. …

WESTERN AFRICA

Nigeria to Leverage Tax Incentives for $257 Billion Gas Reserves

February 17, 2025February 17, 2025 - by admin - Leave a Comment

Nigeria is set to unlock the potential of its $257 billion non-associated gas (NAG) reserves through a series of tax incentives outlined in the proposed Nigeria Tax Bill 2024. With …

WESTERN AFRICA

Court Challenge Over VAT on Restaurant Food in Nigeria

February 14, 2025February 14, 2025 - by Jeremiah Amosu - Leave a Comment

A legal battle has commenced over the application of Value Added Tax (VAT) on food sold in restaurants and hotels across Nigeria. Senior Advocate of Nigeria (SAN), Chief R.O. Balogun, …

EASTERN AFRICA

Kenya Updates Tax Exemption Rules for Charitable Organisations

February 13, 2025February 13, 2025 - by Jeremiah Amosu - Leave a Comment

Kenya has announced that the new Income Tax Exemption Rules for Charitable Organisations have officially taken effect a year after they were first introduced. “The government notifies taxpayers of the …