Find a happy medium. This is what is at stake in the series of meetings started since the beginning of April between the private sector and the tax administration. The last meeting between the two sides was held on Monday. According to the Groupement des Entreprises de Madagascar (GEM), several current topics were discussed during these meetings, in particular the question of tax adjustment. In particular, the recent wave of Third Party Notices (ATD) issued by the tax authorities against several local companies.
Indeed, recently, nine companies came into the crosshairs of the tax administration, ordered to pay their tax arrears. These companies have already made their tax declarations but have not yet fulfilled their obligations, according to the General Tax Directorate. According to this tax administration, Monday’s meeting was an opportunity to discuss solutions to find a “golden mean” within a legal framework for these situations. There is also the theme of tax control, carried out regularly by the DGI, but also that of forced recovery or even recourse to the Council of State.
Can the private sector hope for a favorable outcome to this situation? Time will tell. Currently, it is time for dialogue for the parties involved. These meetings are also part of public-private dialogues. “Both parties agreed on the importance of fluid and transparent communication, as well as the establishment of mutual trust and constructive collaboration,” said the GEM. The employers’ group also indicates that a technical meeting is planned to discuss the necessary improvements in tax procedures. Indeed, the question of taxation has long been the point of contention between the State and the private sector, through successive regimes. Nevertheless, public-private dialogue seems to be the ideal path that both parties have found to negotiate this long-term impasse.
Itamara Randriamamonjy