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Assessing Tax Compliance and Illicit Financial Flows in South Africa

Illicit financial flows (IFFs) such as tax evasion are a major policy challenge for developing and emerging economies, in particular as the COVID-19 pandemic has drained domestic resources. This report presents results from a joint project between the OECD and the National Treasury of South Africa, which assesses tax compliance and IFFs in South Africa. The report provides an overview of macroeconomic, tax and fiscal developments in South Africa since the global financial crisis. It discusses the concepts of IFFs, how they relate to the South African context and provides an overview of South Africa’s participation in multilateral initiatives to combat tax evasion. It also provides a quantitative analysis of tax compliance and IFFs over time amid a variety of tax transparency initiatives implemented in South Africa. Finally, the report examines the effectiveness of tax transparency initiatives such as voluntary disclosure programmes, and looks into income and wealth characteristics of applicants to these programmes.

Published on April 25, 2022


Abbreviations and acronyms
Executive summary
Macroeconomic and fiscal context in South Africa
IFFs in the global and South African context
The tax system in South Africa
Taxpayer responses to increasing tax transparency in South Africa
Assessing the size of undeclared foreign wealth and IFFs through the CRS
Summary and key recommendations
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