Fair Tax Monitor Synthesis consultancy

Background Introduction

The Fair Tax Monitor (FTM) project, launched in December 2014, is a collaborative effort between Oxfam, Tax Justice Network Africa (TJNA), and various partner organizations aimed at assessing fiscal policies and practices around equitable and fair taxation. The FTM employs a standardized methodology (Common Research Framework – CRF) and unified research approach, allowing for comparative analysis across different countries. It serves as an evidence-based tool to pinpoint bottlenecks within national tax systems, aiding advocacy efforts at local and global levels. By building local capacity on technical fiscal matters, the FTM provides comprehensive insights into national tax systems and highlights the key challenges they confront.

From the Ground project is an initiative funded by the Ministry of Foreign Affairs of Finland towards promoting tax justice, transparency, and sustainable social contracts. The project focuses on extraction, its impact on-affected communities, capacity building and providing support to local organizations in their engagement on revenue mobilisation and use of revenues to realise fundamental rights. Leveraging the FTM methodology, the project seeks to provide technical assistance to Civil Society Organizations (CSOs) for enhanced advocacy at international level (including directed at the African Union) by synthesizing the findings from the Mozambique and Kenya FTM reports.

Problem Statement

The African continent is facing multiple impediments to development including the rising debt burden, revenue leakages in form of IFFs, and the impact of COVID-19 among others, that are threatening to reverse the progress made towards eradicating poverty within the continent by exacerbated inequality and increasing austerity. As a result, public spending towards critical social sectors such as health, education and social protection has been affected with marginalized groups such as women and youth bearing the brunt due their vulnerabilities. Furthermore, Oxfam’s latest report: Inequality Inc, laments corporate power and its role in worsening inequality by exploiting a system designed to take from the poor and give to the rich; corporate abuses is prominent with then extractive sector in Africa. This necessitates a need for concerted efforts within the continent to emphasize inclusiveness, transparency and accountability in DRM, resource sharing, and public spending within the extractive sector to ensure the region is resilient in its efforts to promote equality.

The Assignment

Drawing from the findings of the Mozambique and Kenya FTM reports, the specific objective of the assignment is to generate a synthesis report that reviews the status of extractive sector revenue mobilization and realization of rights in Africa. The report should privilege a human- rights-based approach with tax justice lens, linking fair and progressive natural resource taxation with the realization of indivisible, equally valuable, and mutually dependent economic and social human rights. The consultant has the prerogative to present a technical proposal detailing the form and structure that will guide the production of the synthesis report. However, the proposed structure must address the following:

Research Prompts:

1. Securing Natural Resource Tax
   • To what extent do the existing legal, regulatory, and institutional frameworks allow for securing fair and progressive tax from the extractives?
   • Are the regimes aligned with the best international practices to mitigate revenue losses (These include abusive DTA, tax incentives, and tax abuses)? What areas should be improved?
   • What are the main gaps? What policy recommendation can be drawn from the existing gaps?
2. Revenue-sharing mechanisms
   • To what extent do the existing legal, regulatory, and institutional frameworks allow for transparent, accountable, and equitable benefit-sharing and realization of fundamental economic and social rights?
   • Do local-affected communities have a voice and agency to decide/participate on the application of collected revenues?
   • How do the countries compare with international best practices?
   • What are the main gaps? What policy recommendation can be drawn from the existing gaps?
3. Transparency and accountability
   • How robust is the natural resource governance in the two countries? How is the disclosure of information, engagement, reporting, and answerability to different stakeholders?
   • What are the main gaps? What policy recommendation can be drawn from the existing gaps?
4. On the Implications of global tax reforms
   • What are the implications of the recent global tax reforms (e.g: global minimum tax) on the countries’ natural resource taxation regimes?

• What are the main gaps? What reforms should the country implement to align with the changing global tax architecture?

1. Tracking extractives sector tax indicators: Through use of quantitative scoring, develop a tracker on extractive sector tax indicators to show performance against the above areas 1- 3.

These and other questions should be analysed in line with relevant international and regional instruments (Agenda 2063, Africa Mining Vision, and others).

Methodology

A mix of qualitative and quantitative approaches comprising of structured desk reviews, Key Informant Interviews, stakeholder’s engagement and scoring methodology in addition to a poster pitch that well presents data in simple and graphical way using visual aids, to quickly communicate trends, patterns, and relationships within the data.

Specifically, the consultant will:

1. Conduct a systematic review of the Kenya and Mozambique FTM reports as well as other relevant literature, reports, and case studies on extractive sector revenue mobilisation. (20th – 31st May 2024)
2. Review relevant policies and procedures on revenue loss, revenue sharing and revenue management in Africa. (20th – 31st May 2024)
3. Conduct interviews/discussion with relevant stakeholders engaging on extractive sector revenue mobilisation and realisation of rights. (27th – 31st May 2024)
4. Draft a report which among others provides a) an objective assessment of the continental context b) analyses of the challenges and opportunities c) provides recommendations including priority areas, approaches, and strategies for sustainable resource mobilisation in the sector. (3rd -7th June 2024)
5. Facilitate a workshop to generate consensus on the recommendations, disseminate the findings to raise awareness on the study and its findings and support Oxfam and partners to identify policy influencing targets, potential allies and influencing spaces (TBD)

Key Deliverables

The successful consultant(s) will be expected to deliver the following:

• An inception report outlining the proposed approach to the assignment, timeframe, deliverables, etc.
• Ǫuestionnaire for interviews and discussions with resource persons at Oxfam and stakeholders.
• A final report.
• A finalized poster pitch summarizing the findings.

Consultant specifications

Oxfam is looking for a qualified and experienced consultant, or team of consultants, with experience in tax justice, the extractive sector and demonstrated capacity to undertake the type of services sought within the indicated timeline and budget.

Timeline

The assignment is estimated to be completed within 28 days from the date of the signing of the contract.

Research Management

The consultants should report to the Just Economies Advisor at Oxfam in Africa. Additionally, independent peer reviewers will be identified to provide feedback on the report.