Improving Large Taxpayers Compliance ZAMBIA, ABRIL DE 2012

Geographical Location of Mozambique 2

Structure of Presentation 1. Contextualization 2. Monitoring 2. Perspectives 3. Main challenges 3

1. CONTEXTUALIZATION The creation of specialized units for the control of the obligations required of the main tax, generally called large taxpayers, aims to offer a personalized service for the part that contributes most significantly to the public treasury. Indeed, the Revenue Authority has made a profound change in its organization that ended up in the creation of the Large Taxpayers Units(UGC’s), in charge of providing personalized service and turning the fiscal obligation compliance from the taxpayers more efficient because of its weight in total reveue. 4

2. Monitoring Performed activities and current situation In order to carry out a strict monitoring of these taxpayers and with view to achieve the main goal – increasing th weight of their contribution to 70% in 2014, an action plan was designed, reflecting actions to be carried out with a view to identify the major contributors, the systematization of their registration, and compillation of all information necessary for minitoring their contributing behavior, as to achieve the above-mentioned goal. The Action Plan comprises four(4) lines which are subdevided into concrete activities with responsible and deadlines for their completion as follows: Maputo5

2. Monitoring Performed activities and current situation The design and development of a database for monitoring of the Large Taxpayers, which will allow close monitoring and identification of taxpayers considered at risk for due action; Identification of the major contributors in customs duties, as well as those showing to be the largest importers and exporters, in order to promote actions to prevent and combat tax evasion and fraud; Maputo6

2. Monitoring Performed activities and current situation Adoption of the figure of the Taxpayer Manager in the UGC's, then specializing them by the sectors of activity; and Design and implementation of innovative measures and strategies for maximizing the contributions of the Large Taxpayers (promotion of dialogue and cooperation between the AT and taxpayers, specialized audits and better sharing of relevant information ) Maputo7

2. Monitoring Performed activities and current situation Portfolio of Large Taxpayers Regarding to the mobility of taxpayers who meet the requirements of large taxpayers to the respective UGC's, there have been identified throughout the country, 530 taxpayers, passing the number of taxpayers of Large Taxpayers from 669 to 1,199. In relation to other Large Taxpayers who are based outside the UGC's, conditions were created for servicing this segment of taxpayers Maputo8

2. Monitoring Performed activities and current situation A database that will allow monitoring of the Large Taxpayers, allow aggregation of all taxpayers who meet the conditions for Large Taxpayers in order to have control over the fiscal and customs operations thereof was developed Maputo9

2. Monitoria Contribuição dos Grandes Contribuintes na Receita Total Maputo10 Milhões de MT Descrição Receita Total do Estado , , , ,18 Receita Dos Grandes Contribuintes 11847, , , ,32 Peso da Receita dos GC/Receita Total 30,23%30,24%33,02%56,44% Nº de Grandes Contribuintes Total de Contribuintes Activos Rácio Grandes/Contribuintes Activos 0,09%0,07%0,08% Fonte: AT-MF Câmbio: 27,95 MT/USD - Fonte: Banco de Moçambique, Jornal Notícias 16/04/2012

3.Perspectives Regarding the prospects of this area it is important to highlight the thriving environment that puts Mozambique as a destination for foreign investment, particularly in the areas of oil, gas and coal, which will enhance a significant portfolio of Large taxpayers, and A implementação destes implicará o surgimento de outros grandes contribuintes decorrentes das suas ligações com outros sectores colaterais, nomeadamente: construção civil, hotelaria e turismo, transportes e comunicações e de serviços diversos direccionados aos sectores de indústria extractiva e de energia Maputo11

4. Main challenges Challenges for AT, in the management of the Large Taxpayers Ensure that 70% of total revenue collected up to 2014 come from the Large Taxpayers; Implementation and operation of the online database as an effective control of the Large Taxpayers Maputo12

4. Main challenges Strengthening human and technical units responsible for the management of large taxpayers, including reflection on the ability to power them with capacity to act in auditing and litigation, in order to ensure best results ; Strengthening their knowledge in the analysis, design and implementation of strategies to increase contributions; Implementation of the figure for Manager of the UGC's Taxpayers; Continuation on training and specialized training for the officers of TA Maputo13

Thank you 14