Closing the tax gap in Togo

To implement fiscal reforms on a national level the Government of Togo has the following objectives: reorganising the tax department ‘Affaires Domaniales et Cadastrales (DADC)’ and establishing a legal framework for its effective management. To do so, l’Office Togolais des Recettes (OTR) invited Kadaster for technical assistance.

In July, a delegation of Kadaster and VNG International (the international Cooperation Agency of the Association of Netherlands Municipalities) visited Togo. They identified a significant ‘tax gap’: the difference between the total amount of taxes owed to the government versus the amount they actually receive. One of the main causes is that relatively few land titles are recorded in the land registration system of DADC, which serves as a basis for taxation. The Dutch delegation has submitted an analytical report with improvement suggestions for minimising the tax gap, by optimising the efficiency of land administration.