What is the panacea for the multiple tax systems around the world?
That last days, I realized the essential place which is represented by the concept of « harmonization ». In fact, I faced a challenge relating to the translation of worldwide financial practice in oil & gas sector with the local conception. In fact, here in Congo, Oilfield companies are not obliged to follow the normal system which consists by drawing up financial statements at least four months after the closing of a fiscal year. Tax administration withdraws 7.7% of monthly turnover for every oilfield company each month (the reduced rate of Tax on company revenue is 35%; and tax administration withdraws only 22% of turnover 22%*35%=7.7%). However, that practice isn’t financially transparent because the turnover cannot represent the profit of the company. So that flat tax on the turnover could hide many things… On the contrary, the holdings of that subsdiaries oblige that ones to draw up daily, weekly or monthy financial reporting which details their financial situations…Moreover, the AMF, SEC or an other financial control agency obliges them to present regularly their financial situation. Hence, why doesn’t congolese tax administration cancel the statute of ATE (temporary authorization to exercise) if financial situation of that oilfield subsdiaries are available?