Document Library

Value-added tax (VAT) fraud constitutes a substantial drain on the revenue potentials of many countries, and it is generally believed that the fraud is large scale and widespread. It is particularly a challenge in Africa because of the problems of limited resources, inadequate qualified personnel for tax administration, poor identity management, lack of adequate taxpayer’s databases, presence of a large informal sector and the underground economy, corruption, and the lack of capacity to enforce compliance et cetera (De La Feria & Schoeman, 2019; Keen & Smith, 2007).