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Taxation : Accountants and DGI refine their methodology

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Taxation : Accountants and DGI refine their methodology

Improving Fiscal Oversight in Madagascar

On April 24, 2024, at the Carlton Anosy Hotel, the General Directorate of Taxes (DGI) and the Order of Accountants and Financial Experts of Madagascar (OECFM) convened to discuss tax procedures and audit methodology.

During this workshop, the Secretary-General of the OECFM, Hajanirina Razakamahefa, emphasized : « Discrepancies and misunderstandings in the application of texts and laws can arise. However, these exchanges, like today’s, are initiated to coordinate our missions and responsibilities. If necessary, these discussions could potentially lead to law amendments ». Accounting specialists expressed readiness to utilize their expertise to enhance tax audits, underscoring the close relationship between taxation and accounting.

The Secretary-General of the OECFM affirmed that every company must adhere to accounting law (General Chart of Accounts – GCA) and tax law (Tax Code), as accounting forms the foundation for tax calculation. According to the Director-General of Taxes, « the DGI shares responsibility with partners, particularly accountants, to verify and collect tax revenues », highlighting collaboration’s importance in bolstering tax collection.

During the meeting, discrepancies were noted, especially regarding turnover calculation in specific sectors such as construction, potentially resulting in significant tax declarations and audit disparities. Such situations, though familiar, raise concerns about the equity and transparency of the tax system.

To address these challenges, the DGI and its partners have introduced the « e-balance » module, enabling companies to submit their financial statements and annexes to accountants for certification before presenting them to the tax administration.

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