On March 31 2024, the AIDC, in partnership with the Institute for Economic Justice, submitted comments on South Africa’s Draft Global Minimum Tax Bill (the draft Bill) to the South African Revenue Service and National Treasury. We were supported in this submission by the Tax Justice Network Africa (TJNA) and the Stop The Bleeding campaign.
Our submission proposed ways in which the Bill could be strengthened to more effectively ensure corporations pay their fair share. We also raise concerns over the Bill’s adoption of the OECD’s Global Anti-Base Erosion Model Rules (GloBE rules) for two reasons:
- By seeking to implement the OECD GloBE rules ‘by reference’, the draft Bill compromises public oversight over South African tax policy. As further updates or revisions to the GloBE Commentary or Administrative Guidance are made they will automatically be applied in South Africa.
- Provisions of the GloBE rules themselves and the process that informed their development, disadvantage developing countries.
Read more on the document below.
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