New tax codes in place in Cabo Verde

1 July 2014

New tax codes – General Tax Code (Código Geral Tributário), Tax Process Code (Código de Processo Tributário) and Tax Execution Code (Código de Execução Tributária) – in Cabo Verde (Cape Verde) came into force on 1 July and have included small economic operators in the tax system, according to Cape Verdean weekly newspaper A Semana.

According to the Team heading up the Legal Reform of the Ministry for Finance and Planning, the new tax codes are modern and adjusted to Cabo Verde’ new economic reality and will standardise procedures, combat tax fraud and evasion and balance out taxpayers’ rights and obligations as well as making the country more competitive.

The new tax codes replace legislation that has been in place for over 20 years and that is no longer fit for the country’s social and economic situation, the team said.

Compared to he codes they have replaced the new codes improve the Tax Authority’s ability to intervene by, for example, allowing it to have access to information about bank accounts.

In other words, the standards of the new tax codes are more effective in combatting crime, fraud and tax evasion, according to the technical experts from the Ministry for Finance and Planning, who note that the new rules are mainly focused on detecting non-compliance. (macauhub/CV)