Tax and Good Governance Project

Promote good tax governance and a corrupt-free and transparent tax system in Ghana, Nigeria and South Africa

The project identified links between corruption, the lack of business and political integrity and tax crimes. It promoted the concepts of good tax governance and the importance of a corrupt-free and transparent tax system in achieving economic development. It also focused on how law enforcement agencies and tax authorities can cooperate to counter corruption and bribery.

In particular, the project aimed to:

• Identify and engage stakeholders within national tax administrations and the private sector.
• Develop model national tax legislation and international tax agreements to enhance tax administration efficiency, enabling better cross-border cooperation among tax authorities.
• Strengthen institutional capabilities in three primary countries and other African nations. Establish a network of “ambassadors” from key institutions in Africa to promote and disseminate knowledge regarding the role of tax authorities in uncovering corrupt practices.

The project was implemented by the Global Tax Policy Center (GTPC) at the Institute for Austrian and International Tax Law at the Vienna University of Economics and Business (WU Wien) with funding from the Siemens Integrity Initiative.

The project established more effective detection tools of illicit financial flows, thereby discouraging businesses and governments from engaging in such schemes. It contributed to a more informed debate on the issue of transfer pricing, with a clearer and acceptable distinction between what is acceptable or unacceptable. It also changed the nature of the dialogue between business and tax administrations, with three African countries committing to implementing pilot studies on cooperative compliance.