This Special Feature is based on a study by the African Tax Administration Forum (ATAF) on voluntary tax compliance in African countries.1 The study aims to (i) examine the role of facilitation and public trust in both the tax administration and government generally in driving voluntary tax compliance and (ii) identify good practices around voluntary tax compliance initiatives from selected countries that can be used for peer-to-peer learning. It is based on qualitative interviews that were held with officials from eight African Tax Administrations (ATAs) and analysis of published literature on initiatives to improve voluntary tax compliance by different ATAs.

This topic is fundamental to enhancing domestic resource mobilisation in African countries. As noted in Chapter 1 of this report, tax-to-GDP ratios across African countries are, on average, lower than those in other regions, weakening the continent’s ability to achieve the Sustainable Development Goals and the African Union’s Agenda 2063. At the same time, the proportion of tax revenues that African countries use to finance debt service costs has increased sharply, especially since the COVID-19 pandemic, thereby reducing the resources available for social spending and public investment.

The success of policies to increase revenues and improve the effectiveness of Africa’s tax systems will in part depend on the extent to which citizens and businesses are willing to comply with their tax obligations. More broadly, analysis of voluntary tax compliance provides valuable insights into the social contract between citizens and governments. The first section of this chapter discusses the concept of voluntary tax compliance and identifies facilitation and trust as key drivers thereof. The second section presents key findings stemming from policies implemented by African countries to enhance voluntary tax compliance. A third section summarises possible avenues by which ATAs might enhance voluntary tax compliance based on the innovations that are currently being undertaken by African countries.

Voluntary tax compliance can be defined as the willingness of taxpayers to adhere to diverse laws and regulations related to taxation. There are four main pillars of voluntary tax compliance: registration, on time filing, on time payment and on time reporting (Betts, 2022[1]) (OECD, 2004[2]). An analysis of voluntary tax compliance is crucial because the tax system should be understood as a formal institution in the social contract between citizens and governments. Taxation brings in vital funds for public services and initiatives. In this context, the responsibility of the government is hinged on openness, fairness, and accountability, while citizens are obliged to comply. A just and equitable tax system that appeals to taxpayers everywhere is necessary for a sustainable taxpaying culture.

Measuring voluntary tax compliance is not straightforward: it is not an event where one can easily separate those taxpayers that willingly comply from those that do not. Rather, it is a process whereby taxpayers are required to adhere to different business processes, including registration with the tax administration, declaring timely and accurate tax returns, and making accurate and timely tax payments (Betts, 2022[1]) (OECD, 2004[2]).

In the context of tax compliance, ‘voluntary’ means that the taxpayer complies without any push or pull factors such as (i) fear of enforcement by the tax administration, (ii) the need to acquire certain services (such as acquiring a tax clearance certificate in the case of bidders for public tenders) or (iii) the use of a withholding tax regime where the taxpayer has no choice whether to comply or not.

Voluntary compliance denotes a state by which both taxpayers and their advisors are willing to truthfully abide by their tax obligations based on the tax regulations without coercion (Chindengwike and Kira, 2022[3]). Underlining the value of promoting the voluntary tax compliance, efforts undertaken by tax administrations to ensure taxpayers meet their obligations weigh on public finances. Revenue collection costs stood at 2.12% of total revenues in 2022 in countries included in the African Tax Outlook, above the benchmark of 1% for developing countries. A higher cost of collection indicates that ATAs are using significant resources to mobilise revenues (ATAF, 2023[4]).

This study focuses on two main drivers of voluntary tax compliance that stood out from the in-depth interviews carried out with ATAs: facilitation and trust. The main objectives of the study are two-fold:

• To carry out an in-depth evaluation of the facilitation and trust measures in selected ATAs for enhancing voluntary tax compliance.

• To identify good practices around voluntary tax compliance initiatives from selected countries that can be used for peer-to-peer learning.

The study findings were obtained through three different methods, including textual/document analysis, where several publications were referred to in order to understand the status, initiatives and good practices in different tax administrations; an online survey, which was followed up by in-depth interviews with eight selected ATAs; and a survey administered to taxpayers through a few tax administrations. The survey to taxpayers was not well-responded to although a few key lessons could still be gleaned from it.

The role of facilitation in voluntary compliance is to create a favourable environment which will enable a taxpayer to comply. This means that tax administrations aim to simplify taxpayers’ experience with the tax administration to ensure that they meet their obligations seamlessly. In its essence, facilitation assumes taxpayers’ default position is to comply and reserves enforcement for those who refuse; it also articulates the need for a service-oriented approach (Waiswa, Akol and Nalukwago, 2020[5]), (Kirchler, 2021[6]).

The Tax Administration Diagnostic Assessment Tool (TADAT) provides guidelines to tax administrators to improve voluntary tax compliance (TADAT, 2019[7]). These guidelines include:

Seamless and efficient services for taxpayers can be achieved through the use of technology to automate business processes and attain efficiencies to ensure higher levels of compliance (ATAF, 2021[8]). To gain legitimacy, the automation and digitalisation of tax systems must adapt to the local environment. It is therefore important for tax administrators to craft user-friendly systems that consider the uniqueness of the taxpayer.

In the past two decades, ATAs have embraced the use of technology in simplifying key tax administration processes such as registration of taxpayers, filing of tax returns and tax payments as well as customs business processes. Today, over 70% of ATAs have digital tax registers, while over 80% use electronic filing of tax returns and tax payments (ATAF, 2024[9]).

However, there is sub-optimal usage of technology. There remain some ATAs where key processes are not fully automated, and there is a lack of communication between the implementation of the digital platforms and the users, meaning some ATAs still find it difficult to orient and train users on the new systems (ATAF, 2023[4]). As such, some ATAs do not make sufficient use of data from declarations to trace non-filers.

While information technology is well appreciated in transforming tax administration and facilitating tax compliance, informal sector businesses may not be captured, a situation worsened by inadequate information technology infrastructure that not all firms can embrace. According to (ATAF, 2021[8]), countries included in the African Tax Outlook that have invested in information and communication technology solutions have not yet achieved the results they expected.

Taxpayer education also plays an important role in facilitating tax compliance. Placing taxpayers or clients at the centre of the design of taxpayer education and services is one of the findings of the continental guidelines on taxpayer education in Africa (African Tax Administration Forum, 2021[10]). The positive impact on tax compliance of firms knowing their tax obligations was reinforced by the findings of (African Tax Administration Forum, 2021[10]), which also emphasised the importance of ATAs understanding the context of taxpayers to anticipate how to tailor their offerings.

In Africa, a lack of sufficient tax knowledge remains a key obstacle to voluntary tax compliance (Kira, 2017[11]) (Tanui, 2016[12]) (Nalishebo and Halwampa, 2014[13]); (OECD, 2019[14])). Many taxpayers do not know what taxes they owe to the government, what their obligations are, or when and how to meet those obligations (Isbell, 2017[15]) (Aiko and Logan, 2014[16]). In a study conducted in Rwanda, less than a quarter of respondents knew in which month was the deadline for filing taxes (Mascagini, Santoro and Mukama, 2019[17]). Similarly, a survey in Uganda revealed that almost half of taxpayers (45%) were not able to submit a tax return on their own and 56% were unable to claim a tax refund that they may be entitled to (Waiswa, Akol and Nalukwago, 2020[5]).

Educating taxpayers empowers them to navigate tax systems and therefore makes them more likely to comply (Waiswa, Akol and Nalukwago, 2020[5]). (Olaniyi et al., 2023[18]) established in a study in Nigeria that tax education has a significant positive relationship with personal income tax compliance. A study by (Amaning et al., 2021[19]) showed a positive relationship between the use of various media for taxpayer education and tax compliance among small and medium-sized enterprises in Ghana; since these enterprises are mainly operating in the informal sector, it was important that targeted training be established to foster voluntary compliance.

Aside from improving the likelihood of tax compliance, tax training reduces taxpayers’ vulnerability to exploitation by expensive tax agents and corrupt tax officials. Similarly, informed taxpayers are better able to take advantage of the tax benefits available to them, such as allowable deductions, hence protecting them from paying more than they should (Benzarti, 2015[20]).

The legitimacy of a government and the ability of the state to accomplish its economic development goals depend in large part on the trust of citizens. Trust is also at the core of the behaviour of individuals towards their tax obligations (Gebrihet, Gebresilassie and Woldu, 2024[21]) (OECD, 2019[22]). Given the role of tax in state building and economic development relevant to achieve Agenda 2063, it is important from an African perspective to determine the interplay between trust and voluntary tax compliance and, in particular, to identify how tax administrations on the continent have crafted means of increasing taxpayers’ trust in the state.

In Uganda, the effectiveness of government, as well as its level of transparency and accountability, have an impact on tax compliance (Nkundabanyanga et al., 2017[23]). A study by (Kumi et al., 2023[24]) found that trust was one of the determinants that positively affect voluntary compliance in Ghana and that trustworthiness was negatively related with tax enforcement. This implies that voluntary tax compliance is a result of taxpayers’ intrinsic motivation caused by trustworthiness and that authorities that regularly enforce face trust challenges with taxpayers.

A study by (Kogler et al., 2023[25]) in 44 countries (including Egypt, Ghana, Morocco and South Africa) using the shadow economy as proxy for tax compliance established that trust in the tax authority has a positive association with tax compliance. In addition, (Nwokoye et al., 2023[26]) established a significant positive relationship between tax reductions, capital allowances, simplifying communication, deterrence messages, tax morale messages, tax audit, enforcement penalties, ease of tax filing, basic government services, political legitimacy and tax compliance. On the other hand, they established that tax rates, tax holidays, collusive evasion, perceptions of corruption and infrastructure deficiency have a significant negative relationship with tax compliance.

Results in a study from Togo showed that citizens’ negative attitudes towards bribes, the severity of penalties and the legitimacy of customs duties are positively correlated with tax compliance (Soglo and Amedanou, 2023[27]). Voluntary tax compliance may not only be predicted by behavioural and deterrence factors alone but political will may also play a part.

In the area of trust, most ATAs still operate below international good practice around dispute resolution mechanisms (ATAF & IMF, 2022[28]). Concerns about poor use of taxpayer money, corruption in government generally and tax administrations generate mistrust, thereby affecting voluntary tax compliance. Higher non-compliance results in frequent tax audits and investigations that cost tax administrations time and financial resources.

The World Bank’s framework for improving tax compliance consists of three broad channels: (i) facilitation; (ii) enforcement; and (iii) creating public trust in government and its spending practices (Prichard et al., 2019[29]). This section discusses what ATAs have done to promote facilitation and public trust, the gaps that remain as well as success stories from selected countries.

Facilitation can be achieved in various ways, including taxpayer education, simplifying tax administration systems and processes, offering support services and simplifying digital systems.

ATAs have dedicated considerable effort and resources to educating taxpayers and the population at large. Almost all ATAs that submitted data and statistics for the 2023 edition of the African Tax Outlook (29 out of 30) have specific divisions to educate taxpayers, although seven of them reported that they do not allocate a budget to these functions (ATAF, 2023[4]). Only Zimbabwe Revenue Authority (ZIMRA) indicated that it does not have a dedicated office in charge of taxpayer education, although it allocates a budget to taxpayer education. Overall, it is reported that tax education is generally underfunded in African countries (ATAF, 2023[4]), (ATAF, 2024[9]).

There are various initiatives to educate taxpayers2 and most of these are common in many tax administrations. Some of the initiatives include:

• Tax seminars and workshops. This is one of the most common ways to educate taxpayers in Africa. ATAs invite taxpayers for training sessions organised in a class-room environment. The sessions are sometimes targeted at specific groups of taxpayers (usually small taxpayers).

• Mobile tax units. Since seminars are organised in central places (mostly urban centres), many traders find it hard to attend. Some TAs now use vehicles fitted with speakers to move around sensitising the population on tax issues. Kenya Revenue Authority (KRA) and South Africa Revenue Service (SARS) have been operating mobile tax units (MTUs) for some time (Mascagini and Santoro, 2018[30])). The Uganda Revenue Authority (URA) also recently started using its own branded buses as MTUs.

• Radio and television talk shows and adverts. These are also common in many ATAs. Officials from a tax administration book sessions on radio and television programmes to address specific topics. Some ATAs have organised content that is run as adverts on radio and TV.

• Tax television channels. A few tax administrations have established television channels. One example is KRATV, which the KRA uses to disseminate tax information. The KRA records videos on how to complete different tax obligations such as how to file a tax return, how to apply for a tax identification number and how to make a tax payment. It then uploads these recordings on the KRATV network which taxpayers can access at any time. The URA has a similar initiative known as URATV. This, however, is internal to URA staff. The URA also records videos on how to complete different tax obligations and uploads them on its YouTube channel.

• Tax education in schools and universities. ATAs are also targeting future taxpayers by taking tax education to schools and universities. The KRA empowers young school children and advises them to sensitise their guardians about tax matters. A similar approach was implemented by the URA, which formed tax clubs in schools that hold debates on taxation topics. Similar tax clubs in schools are reported to have been implemented in Mauritius, Rwanda and Tanzania (OECD, 2021[31]).

• A customised programme for newly registered taxpayers. The Rwanda Revenue Authority has a special programme that targets newly registered taxpayers, teaching them about the basics of taxation such as what taxes they are liable to pay, when and how to pay, and how to amend their registration details. An impact evaluation reveals that this programme improved tax compliance among those who received training relative to those that did not, increasing the probability of declaring tax returns by 27 percentage points as well as increasing the amounts declared (Mascagini, Santoro and Mukama, 2019[17]).

ATAs are working to take services as close to taxpayers as possible. Many ATAs have done this through opening branches in most busy places across the country. Some countries have opened one stop shops (OSS). In an OSS, different government agencies such as those responsible for licensing or registering businesses and the tax authority are brought together under one roof so that individuals can use the services of different authorities in the same visit. An evaluation of administrative interventions aimed at improving tax compliance among small and medium enterprises in Uganda revealed that the OSS had a relatively large impact on both the number of newly registered taxpayers and the revenue collected (Jouste, Nalukwago and Waiswa, 2021[32]).

In Kenya, the government established an OSS commonly known as Huduma centres in almost all major towns. These include a counter for KRA services that is used to receive feedback from taxpayers as well as conveying tax information. The aim of the government was to bring services closer to communities that are commonly interrupted by Internet breakdown.

In Rwanda, the government merged eight government institutions in 2008 to create an OSS known as the Rwanda Development Board (RDB). The RDB is under the supervision of the office of the president and its main goal is to promote business and investment growth in the country. In the RDB, several government services such as business and investment registration, tax incentives management and visa facilitation are offered under one roof.

ATAF has found that call centre services encourage voluntary tax compliance (2022[33]). ATAs such as Nigeria’s Federal Inland Revenue Services (FIRS), URA and KRA have established call centres that operate like those of telecom companies and banks. A taxpayer can reach out to the tax administration by phone or by email 24 hours a day. Taxpayer requests are recorded and tracked on how they have been responded to and how long it took to respond.

The head of the URA contact centre reported that they no longer receive complaints from taxpayers about delayed or non-response from the URA regarding their complaints and/or support requests. Calls, emails and social media are all managed in the contact centre and the head of the contact centre monitors how many calls or emails are received, how many have been responded to, and the time taken to respond on a real-time basis.

In Mauritius, taxpayers and revenue officers from the Mauritius Revenue Authority (MRA) engage in tax-related conversations by video call. This visualisation simplifies explanations and illustrations made by the revenue officers.

The Eswatini Revenue Services established the Electronic Tarif Tool (ETT), which is used by taxpayers to lodge complaints and appeals related to customs classifications. The ETT is structured to easily capture taxpayer information.

African countries have embraced the digitalisation of tax systems due to its capacity to simplify tax compliance, reduce opportunities for collusion and corruption among tax officials through the reduction of face-to-face interactions, and generally improve the efficiency of tax administrations. Thanks to digitalisation, ATAs also increasingly possess platforms for disseminating information, for example through their online portals (websites). Digital systems also enhance the evidence base for decisions related to tax policy and administration (OECD, 2006[34]), (OECD, 2017[35]), (Mayega et al., 2021[36]).

Today, key tax administration systems and processes such as taxpayer registration, filing of tax returns and making tax payments are now digitalised in most ATAs. In the 2023 edition of the African Tax Outlook, 29 out of 31 member countries reported that they have implemented online filing and 97% reported that they have online payment systems (ATAF, 2023[4]). ATAs have also progressively integrated their systems and processes across government agencies. Box 3.1 provides some examples of the different ways in which ATAs are using technology to enhance compliance.

Empirical studies reveal that increased use of technology in tax administration in Africa is associated with higher revenue collections. For instance, a study on the impact of system automation on revenue collection in Kenya showed that the number of transactions and the revenue amount collected increased significantly after the introduction of the SIMBA system (Gitaru, 2017[37]).

In Uganda, a study by (Jouste, Milly and Waiswa, 2021[38]) shows that the number of presumptive taxpayers increased rapidly after the introduction of a new e-filing system. Similarly, a recent taxpayer registration reform that involves issuing an instant Tax Identification Number has resulted in a dramatic rise in new taxpayer registrations, with registrations in the new instant channel accounting for more than a third of total registrations in the last four years (Scarpini et al., 2024[39]).

In South Africa, SARS reports that advanced technologies such as machine learning and Artificial Intelligence have improved tax compliance. For instance, SARS processed 4.3 million VAT returns in 2022, over 90% of which were processed by an automated tax processor and machine learning algorithms without human intervention.

While the benefits of introducing digital systems and their continuous improvements are many, three main challenges remain. These include (i) intermittent Internet functionality, (ii) exorbitant costs of system acquisition and/or development, and (iii) low computer literacy rates. Initiatives to improve Internet connectivity and lower Internet costs, as well as training for the population on how to navigate systems, should be continuously implemented. Similarly, leveraging available IT skills within tax administrations to develop customised IT systems should be prioritised by ATAs that are in the early stages of developing their systems.

In the medium to long term, the ATAF should speed up its idea of developing a continental IT system that can easily be customised to specific country needs similar to UNCTAD’s ASYCUDA world system that is now used by 102 countries in the management of international trade data and processes (UNCTAD, 2023[40]).

A voluntary disclosure programme (VDP) is a tool widely used by both developed and developing countries as a means of encouraging voluntary tax compliance among taxpayers and boosting revenue collections. VDPs require taxpayers who were hiding from tax authorities either within the country or in the diaspora to declare incomes or assets and only be assessed on the principal tax obligation. The incentive to taxpayers is the waiver of any penalties and interest on evaded taxes, while tax authorities benefit from collecting revenue with minimum costs. It is reported that VDPs have resulted in EUR 90 billion of additional tax assessments since 2009 around the world and that developing countries specifically have identified at least EUR 30 billion in additional tax assessments (ATAF, 2024[41]).

If not managed properly, there is a risk that a VDP can undermine tax morale amongst compliant taxpayers. This is because those granted access to a VDP will obtain a benefit even though they have been non-compliant with their tax obligations. If implemented well, the public benefits from the increased revenues and improvements in tax morale (ATAF, 2024[41]).

Several African countries have implemented VDPs, and they report collecting significant revenue from these programmes. For instance, South Africa held a VDP for 11 months between 2016 and 2017 and it is reported that the programme resulted in the disclosure of USD 1.8 billion of foreign assets and the recovery of approximately USD 296 million in tax revenues. Nigeria ran a two-year VDP between 2017 and 2019 that raised an additional USD 162 million in tax revenues and resulted in an increase in the number of registered taxpayers from 14 million in 2016 to 19 million in 2018. A tax amnesty programme in Zambia resulted in an increase in the recovery of tax arrears from 10% in 2021 to 16% in 2022. Countries such as Kenya and Uganda are also implementing VDPs but the results from these programmes have yet to be ascertained (ATAF, 2024[9]) (ATAF, 2024[41]).

Creating trust is crucial to building taxpayer morale as a driver of voluntary compliance. Building trust addresses the role of fairness, ethics, equity, reciprocity and accountability of tax systems and government as a whole, as well as its spending practices. According to (Prichard et al., 2019[29]), taxpayers are more likely to voluntarily comply if:

• Tax systems are administered in a just manner whereby all taxpayers are treated and/or penalised fairly and, in case of abuse of their rights, there are remedies available.

• The tax burden is equitably distributed such that everyone is seen to be paying their fair share. In this case, there is need for (i) horizontal equity, whereby taxpayers with similar economic circumstances pay a similar level of taxes and (ii) vertical equity, whereby the better-off pay more as a share of their income than the less wealthy and, in the case of firms, there is relative balance of effective tax burdens across differently sized firms.

• Tax revenues are translated into public goods and services that taxpayers are satisfied with. This calls for the government to be more accountable to taxpayers for the taxes collected.

There is scope for both the government and tax authorities to gain more trust from the taxpayers. Afrobarometer surveys conducted in 34 African countries reveal that on average more than half (52%) of Africans do not trust their government and that 54% believe that corruption has increased within the government (Figure 3.1). Such negative perceptions undermine tax morale and consequently tax compliance. On average, more than half (56%) of respondents in the 34 countries where the Afrobarometer survey was conducted thought it very likely that the rich pay bribes to avoid taxes. On the other hand, 57% stated that it is less likely for ordinary people to avoid taxes by paying bribes (Table 3.1).

The public often task ATAs with explaining how the tax revenues have been utilised. ATAs have thus taken on the role that would otherwise be done by another arm of government such as the Ministry of Finance of trying to provide evidence of what government revenues have been used for. Some initiatives include:

• National taxpayer appreciation and accountability days. These are national days meant to (i) appreciate compliant taxpayers; (ii) provide some level of accountability of what government has been able to do during the year using tax revenues; (iii) to educate taxpayers on tax issues; and (iv) to offer tax services (mostly registration of taxpayers). Countries such as Kenya, Rwanda, Tanzania, Burundi, Mozambique and Senegal have been implementing this initiative for years. ATAs organise these events in collaboration with other government agencies that are invited to showcase what they have done using tax revenues.

• Publicising government works on televisions and billboards. ATAs have designed adverts that are run on TV and billboards displayed in town and city centres showing government works. In Uganda, the URA runs a “Because of You Campaign” that informs the public that it is because of their contribution through taxes that government has been able to offer the different services.

• Open minds forums. These are intended to seek public opinions on new tax measures that the government intends to introduce. In Madagascar, the tax administration conducts working meetings with local business operators and accountants at the beginning of the financial year to brainstorm on how the tax policies and administrative procedures can be amicably handled.

Besides trying to improve trust in government, ATAs also implement initiatives that seek to improve public trust in themselves, including:

• Press briefs. These are done to inform the public about how much the TA tax administration been able to collect in each period. Usually, the media are invited to attend this event with the objective of informing the rest of public about how much has been collected by the TA.

• Specialised divisions to improve both staff and process integrity. Almost all tax administrations have a dedicated team to address integrity concerns for staff and business processes. These are tasked to conduct compliance checks on staff and take appropriate disciplinary action when required. These divisions also audit systems and business processes to verify if these perform as per the service level agreements.

Facilitation and trust are key drivers of voluntary compliance among ATAs. While traditional approaches have favoured the ‘stick’ approach to increasing compliance through enforcement, the modern approach is to build a rapport between government and citizens, so that each party fulfils their obligations regarding the social contract. While many ATAs have fared well around facilitation, several are still lagging on the issue of building public trust.

This study demonstrates the wealth of information that is available for peer-to-peer exchanges and benchmarking among ATAs on innovative ways of enhancing voluntary tax compliance across the different tax administrations.

Specific innovations for facilitation have been implemented across a number of areas:

• In terms of tax education, innovations that could be considered by ATAs include (i) a dedicated tax education programme targeted at newly registered taxpayers; (ii) MTUs to take tax education to rural areas, (iii) tax television channels; and (iv) targeted tax education programmes for the youth in schools.

• Tax education programmes should not only focus on maximising tax compliance but also on dissemination of information about public services, budget transparency and government accountability.

• One stop shops where several government services are offered under a single roof.

• To improve the registration process, ATAs should encourage integration with other government services.

• To simplify return filing, ATAs should consider auto-populating tax returns. This calls for automation of key tax administration systems, access to third-party data and system integration within a given country.

• ATAs should diversify payment platforms by blending banking services with those of telecom companies using mobile money services.

It can be concluded through interviews responses that many ATAs have developed digital platforms with the assistance of costly foreign expertise. Maintaining these platforms and implementing recommended corrections also comes with a high cost. It is noteworthy that several ATAs are revamping their tax administration systems. For example, ZIMRA has taken steps to revamp their cumbersome and expensive tax systems by developing a new one using local expertise. IT procurement needs to be accompanied by a wider digitalisation process that clearly identifies what is needed and is accompanied by the necessary human resources (OECD, 2021[42]).

To harness the benefits of digitalisation, it is recommended that, in the long run, ATAs, with support from their respective governments, should focus on developing affordable, user-friendly and customised tax administration systems that are automated, digitalised and integrated. Additionally, there is a need to build local capacity to maintain systems through hands-on training and system upgrades. Another option is for ATAF to champion this initiative by developing a continental IT system that can easily be customised to specific country needs.

To promote integration of services, African governments should focus on enhancing infrastructure to enable seamless exchange of information among different government agencies. Ministries of Finance should collaborate with Ministries responsible for Communication and Information Technology to ensure the provision of adequate infrastructure across their respective jurisdictions. Moreover, effective coordination among the Ministry of Finance, Ministry of Information Technology, Ministry of Commerce/Trade, the National Business Registration Bureau, and the private sector is essential for enabling the linkage of the private sector to ATA systems.

Voluntary tax compliance has been hindered by the budget constraints faced by many ATAs. In particular, many ATAs lack adequate funds to build or upgrade tax systems. In some cases, they rely on expensive external expertise that is procured through cumbersome and lengthy procurement processes. Increased budgetary support for communication and Information Technology services is also needed to enable government agencies to operate in an automated environment and to seamlessly exchange information.

Facilitation of taxpayers and creating public trust in government and its spending practices as well as creating trust in the tax administration itself, are two critical channels of encouraging taxpayers to voluntarily comply. Although tax administrations are mostly responsible for facilitation and have limited control over increasing public trust in government, tax administrations should create a good image before the public through shunning corruption. ATAs should strive to address integrity issues as a means of enhancing trust in African tax systems in order to drive voluntary tax compliance.

On the other hand, trust in government remains a major issue of concern in Africa. Legislators should be cognisant of the significance of initiatives aimed at fostering trust. Trust is fostered by open communication, justice and accountability. Individuals are more inclined to voluntarily comply with their responsibilities when they have faith in government. Building more trust in government can promote voluntary compliance and improve tax morale.

In general, improving voluntary compliance specifically - and revenue mobilisation generally - requires a whole-of-government approach. The tax administration and other government agencies need to work together to demonstrate that tax revenues are properly utilised and that the government is determined to fight corruption and poor usage of taxpayer money. High-ranking government officials, politicians and influential citizens in society should set good examples by demonstrating that they are compliant with their tax obligations.

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