CÔTE D’IVOIRE Trends and Developments Contributed by: Innocent Kouakou, Assemian Kouakou, Francky Lukanda and Lonzo Colombe, Ofori Conseils Africa LLP
sion, and the starting point for calculating notification periods is uniformly fixed as the date of the first on- site intervention. Audit of computerised accounts is modernised: the administration is granted immediate access to back- ups of the databases used for operations, the ten- year retention obligation is extended to IT documenta - tion and failure to produce back-ups is now included among the situations justifying an assessment by the authorities. In transfer pricing matters, the principles of the ECO - WAS Directive are expressly incorporated, with: • reaffirmation of the arm’s length principle; • reversal of the burden of proof onto the taxpayer; • a more precise definition of relationships of dependence; • an obligation to keep specific documentation; and • appropriate penalties in the event of non-compli - ance. The Tax Procedures Code is supplemented by the introduction of accrued rights to align accounting for tax revenue with West African Economic and Mon - etary Union (WAEMU) accrual accounting standards: revenue is now recorded at the time of assessment (the chargeable event) and no longer only on collec - tion.
Measures to combat fraudulent cessation of business are reinforced: joint liability for tax payment is estab - lished between the “closed” company and the newly created entity where consistent indicators (activity, shareholding, address, customer base, suppliers) reveal a disguised continuation arrangement intended to evade tax debts. The Treasury’s safeguards are strengthened through a reform of the regime governing refunds of overpay - ments: the text clearly permits overpayments to be offset against all categories of self-assessed taxes (excluding third-party taxes) and against sums aris - ing from tax audits (excluding ex officio assessments for fraud), in order to overcome the operational limits of traditional budgetary refunds. In addition, the General Directorate of Taxes is expressly authorised to audit, on behalf of territorial authorities, local taxes collected by tax roll or revenue order, as well as duties and charges, with reassessed amounts being collected by the tax collector and allocated directly to the authorities concerned. This extension of powers is intended to improve the yield of local taxes and combat the informal sector, while also strengthening traceability of flows.
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