Natural Resources Tax Administration and Reforms in Africa

Taxation is a systematic process that includes policy, law, and administration. Tax administration encompasses assessment, collection, and enforcement of taxes legally due to the state. The tax systems of every country are made up of, on the one hand, the tax laws, and, on the other hand, the administrative structures or mechanisms or systems for the implementation of those laws. Thus, tax laws provide the mechanism or “what to do”, while the tax administration suggests “how to do it”. Effective tax administration facilitates and encourages voluntary tax compliance, deters tax evasion and avoidance, maintains public confidence in the integrity of the tax system, and ensures that tax legislation is administered fairly and uniformly. This chapter integrates the knowledge on natural resources tax administration and reforms in African economies in relation to identification, registration and assessment of taxpayers, imposition, collection, and processing and examination of tax returns, handling of administrative appeals, complaints and settlement of disputes, detection, and enforcement of any penalties for non-compliance of the tax laws. The chapter further presents valuable suggestions on how African economies can achieve effective tax administration of natural resources through reforms without compromising the principles of equity, certainty, economy and convenience.