“With the creation of the ATCV, Cape Verde takes another step in modernizing the Tax Administration.” The new institute will further “improve the effectiveness and efficiency of its operations in a flexible manner, able to adapt to changes and the growing demands of taxpayers in a context of globalization and opportunities for automation,” as stated in the Official Bulletin published on Tuesday.
The government’s program and the 2021-2026 confidence motion foresee strengthening tax competitiveness, increasing the effectiveness of tax administration, combating tax evasion, and expanding the taxpayer base.
The ATCV succeeds the National Directorate of State Revenue (DNRE), assuming its responsibilities, contracts, and procedures, while retaining the personnel currently in their positions.
The ATCV’s headquarters will be in the city of Praia, covering nationwide jurisdiction.
The structure includes a governing board composed of a president and two members, a fiscal and advisory council responsible for supporting strategic decisions.
The institution’s competencies include collecting taxes and customs duties, overseeing and ensuring tax justice, managing information systems, promoting tax citizenship, proposing system improvement measures, and establishing international agreements in the area.
The institute will have its own budget, comprising state allocations and own revenues, including percentages of coercive collections, fines, and other services. Its employees will follow the public employment regime, with the possibility of integrating temporary teams through individual employment contracts.
The transition from DNRE to ATCV will be gradual, over a year, allowing for the progressive establishment of infrastructure and adaptation of teams to the new model, aimed at providing greater autonomy and operational flexibility to Cape Verde’s tax administration.
The executive noted that international experience shows that countries with more autonomous Tax Authorities have advanced in improving their tax systems.
“According to the International Monetary Fund (IMF) technical assistance report from August 2021, Cape Verde is experiencing a historic moment suitable for implementing a Tax Authority, which could place Cape Verdean administration at the forefront in Africa and transform it into one of the most modern in the world,” it further stated.
