RDF continues to support government institutions in 12 countries to progress on digitalization. In this month’s newsletter, we will focus on RDF’s impact on tax audits in Cameroon.
In Cameroon, the FUSION project, together with the Direction Générale des Impôts (DGI) and in cooperation with GIZ, has seen an exciting new software module being launched: The RD Fusion Controls Module. This module aims to increase accountability and efficiency of the audit process.
The Tax Audit Process
The audit process in Cameroon follows three main steps: Planning, Execution and Evaluation. The Planning phase involves data analysis and risk management to select which taxpayers to audit. The Execution phase follows the audit from validation of that taxpayer until the final tax notification is sent. The Evaluation phase is a new phase which aims to better evaluate the effectiveness of the audits to improve the selection of taxpayers in future audit rounds.
The Controls Module in the FUSION system follows the entire audit process, digitizing all three steps for all types of audits. In Cameroon, in June 2022, it was decided to pilot the module for the Execution phase for the Large Taxpayers Office.
RD Fusion Controls Module
The Controls Module includes different user rights according to the various roles that take part in the audit process: from auditors all the way up to the Director General. The Planning phase follows various stages of approval according to the Cameroon procedure. The system offers a messaging functionality for easier communication between users, and notifications throughout the process.
When a company has passed to the Execution phase, the audit Coordinator can assign a team and approve tasks in the system. The auditors who are assigned to the team can execute the tasks: filling out pre-defined tables, writing comments, downloading/uploading correspondence, fill out their timesheets and submit case reports throughout the duration of the audit.
This module was developed flexibly and can easily be configured to any government process.
It aims to help the taxation decision makers to instantly have a detailed overview of what is done within the controls and the tasks achieved by each team and each member of a team, for each taxpayers audited.
Progress so far
The Controls Module was launched in Cameroon in June 2022 for a pilot phase focusing on the Large Taxpayers Office for the execution phase. The progress so far includes:
• 9 trainers trained
• 100 auditors and coordinators trained
• 203 companies being audited through the system
• 2 downloadable reports to track the progress of the audits in the module
Systems installed in Cameroon
- GovIn e-service portal, where companies access their electronic forms to submit, including their tax returns.
- RD Fusion, where data from all tax-related data sources are collated, including the submission online. Includes a risk management module and the new control module
- TAS, the new RDF tax administration system that is under development with tax accounts and integration with payment services.
- RDF started a project with the Solomon Islands Ministry of Mines, Energy and Rural Electrification, with funding from the World Bank
- In Ghana, over 2,000 companies are accessing their copmany pages in the online Ghana Mining Repository portal.
- The Rwanda Minerals Board have started issuing licenses in their new GIMCS system (based on MCAS) over the last months, with the online portal (GIMCS External) publishing their license registry.
- Cook Islands Seabed Authority issued deep sea mining licenses earlier this year, and they are available on their new portal provided by RDF with Commonwealth Secretariat support.
- Sierra Leone National Minerals Agency implemented a currency redenomination in MCAS, and now process all payments in MCAS and NTRS in the new SLE currency.