The role of judicial cooperation in the fight against tax evasion and tax avoidance in the CEMAC zone

CONCLUSION OF CHAPTER II

As mentioned supra, the cooperation in the fight against tax evasion and avoidance as well as illicit financial flow is administrative on one hand and judicial on the other. The harmonization of tax fund rules in the CEMAC zone therefore appears as a prerequisite to render the above forms of cooperation effective. Cooperation which has to be carried out in compliance with OECD and CEMAC directive and regulations without however despoiling members states from their tax sovereignty.

CONCLUSION OF PART I

Analysing the role of judicial cooperation within the framework of the fight against tax evasion and tax avoidance in the CEMAC zone in this part of our work was characterised by an overview of tax evasion and tax avoidance in the sub region on one hand and on the other hand by the operational aspects of the said cooperation. A cooperation having a political and legal dimension wherein we could examine the active role of institutions such as conference of Heads of State, the Council of Ministers of UEAC, the Ministerial Committee of UMAC, the council of ministers of OHADA,the influence of GABAC and FATF in the fight against tax evasion and tax avoidance. The role of these institutions being supplemented by a series of legal rules governing the said cooperation though their harmonisation at the sub regional level is still facing some difficulties. These difficulties turn to limit the fight against the various causes and consequences of tax evasion and tax avoidance.

However, the cooperation in the course of fighting against above mentioned tax malpractices is administrative and judicial. Administrative cooperation being more developed and structured than judicial cooperation which is as we have been seeing in the course of this work the soft spot of the cooperation. Administrative cooperation is characterised inter alia by exchange of information between the tax administrations such an exchange having many forms as seen in the chapter II. Judicial cooperation on its part rest on mutual legal assistance and the denunciation for prosecution as well as the execution of judgments

The above analysis of the role of judicial cooperation in the fight against tax evasion and tax avoidance contributed in bringing out the challenges facing the cooperation. These challenges gave rise to the proposal of relevant solutions aimed at reinventing the various mode of cooperation used in fighting against tax evasion and tax avoidance with an accent on the need to enhance judicial cooperation.

PART II: THE PROBLEMATIC INHERENT IN PREVENTING TAX EVASION AND TAX AVOIDANCE AND THE NECESSITY OF ADOPTING A NEW APPROACH IN OTHER TO ENHANCE JUDICIAL COOPERATION IN THE FIGHT AGAINST TAX EVASION AND TAX AVOIDANCE WITHIN THE CEMAC ZONE

Regional integration, which is a process by which neighbouring countries enter into an agreement in order to upgrade cooperation through common institutions and rules, is generally based on many objectives ranging from political, economic, social and even environmental once. Since its creation in 1994, CEMAC as a sub-regional grouping has had as principal objectives; to develop capacities to maintain peace, security and stability as essential prerequisites for economic and social development; to develop physical, economic and monetary integration; to develop a culture of human integration and to establish an autonomous financing mechanism for ECCAS.

In realising the aforementioned objectives cooperation between member states become mandatory especially to fight against some of the challenges faced by the sub region amongst which we can cite financial challenges such; money laundry, tax evasion and tax avoidance as well as other forms of illicit flow of cash. Practices detrimental to the development of the economies of member states.

As demonstrated in the first part of our work, CEMAC member states in fighting against tax evasion and tax avoidance via judicial cooperation had to set up a series of mechanisms ranging from the harmonisation of some community tax rules to the enhancement of mutual legal assistance. This judicial cooperation is practice alongside administrative cooperation, which is the principal mode of collaboration in fighting against tax evasion and tax avoidance within and outside the sub region. But unfortunately both types of cooperation mentioned supra are characterised by challenges (Chapter I) which warrant urgent and efficient solutions (Chapter II) to be implemented at the short, medium and long run.

CHAPTER III: CHALLENGES FACING JUDICIAL COOPERATION IN PREVENTING TAX EVASION AND AVOIDANCE IN THE CEMAC ZONE

A challenge is a new or difficult task that test somebody's abilities and skills.^156(*) By challenges facing judicial cooperation in prevention tax evasion and tax avoidance in the CEMAC zone, we are referring to those elements slowing down, hindering or at times blocking the active role of judicial cooperation in fighting against fiscal malpractices in the CEMAC sub region. These problems further extends to administrative cooperation. In this chapter, an attempt will be made to analyse the factors limiting role of judicial cooperation within the framework of the fight against tax evasion and tax avoidance (Section I) before delving into the lacunas of the current form of judicial and administrative cooperation instruments (Section II).

* ¹⁵⁶ Oxford advanced learner's dictionary, Op.cit.