1. CASH ECONOMY – GROUP 3 - JIMU

2. CHALLENGES Lack of documentation or invoices for the transactions
No audit trail
Difficult to quantify correct amount of taxes due to incomplete records
Promotes corruption for both the taxpayer and the tax administration
Under declarations due to missing records
Difficult to identify potential taxpayers for registration

3. SOLUTIONS / RECOMMENDATIONS
Extensive taxpayer education for the general public including schools
Introduction of laws to compel customers to demand receipts
Use of a TIN to access different services e.g banks etc
Promote the use of technology for business transactions

4. RECOMMENDATIONS FOR CAPACITY BUILDING
Specialised training for auditor to audit incomplete records
Effective use of risk assessment principles in tax administrations
Exchange programmes aimed at sharing experiences and learning from countries that have dealt with taxing cash economies successfully
VADA Secretariat to carry out reaserch on the challenges faced by member states and develop general guidelines to tax cash economies