Promoting Domestic Resource Mobilisation in Sub-Saharan Africa TRAINING YOUTH ENTREPRENEURS Date: 11th January, 2021 Concept Note Page 1 of 4 1.1 Introduction Youth For Tax Justice Network will be training Youth Entrepreneurs in the Small and Medium Enterprises (SMEs) through their associations and federations by equipping them with skills and knowledge on tax compliance and capacity building in taxation with the objective of increasing Domestic Direct Investment (DDI) under the project entitled “Domestic Resource Mobilization: Promoting Domestic Resource Mobilization in Sub - Saharan Africa”. This is activity 1.1.10 in the work-plan under Outcome 1 “where Member States of EAC, ECOWAS and SADC implement key recommendations in the AU HLP report on IFFs to curb harmful tax practices by 2022” and to achieve results. This activity will be piloted in Uganda 15 participants are expected to be trained from senior management of these SMEs. The trainings will take place on 11th February, 2021 at Fairway Hotel physically in order to be in compliance with the public health guidelines in response to curbing the spread of COVID-19 pandemic. Attached below is a tentative program of the event. 1.2 Problem statement YTJN carried out a mini survey in 2018 with The Open Forum Initiative amongst the youth in technical Hubs and the research showed that most young people were not tax compliant. The young people were unaware of the different procedures in relation to tax for example filling returns, appeal assessments, registration for TINs, tax clearance certificates and when/how to engage URA. Without these trainings, the young people in these SME’s are neither informed nor well versed with procedures involved with the taxation system say; registration for TINs, filling returns digital stamps which YTJN intends to address during these sessions. This is a unique approach in that YTJN is targeting and putting emphasis on the youth who are overlooked in these matters. 1.3 Justification ● This comes at a time when Africa as a continent is embracing Domestic Resource Mobilization (DRM) as a Sustainable Development Goal (SDG) in a bid to reduce Foreign Direct Investment (FDI). 1In addition the Sub-Saharan Africa (SSA) government debt burdens are rising at a faster pace and to a higher level than for other emerging markets (EM), heightening the risk of further downgrades and defaults, Fitch Ratings says. The median government debt/GDP ratio for the 19 Fitch-rated SSA sovereigns is to reach 71% at end-2020, from 1 https://www.fitchratings.com/research/sovereigns/debt-distress-rising-in-sub-saharan-africa-30-06-2020 Page 2 of 4 57% at end-2019 and 26% in 2012 due to the pandemic Covid-19. With this training, the young people will be able to understand the purpose of DRM as an SDG and the need as to why they should be tax compliant. 1.4 Purpose of the activity The training is to further expose the youth in the Small and Medium Enterprises (SMEs) to a broader perspective to tax compliance. Specific Objectives for Training Youth Entrepreneurs: a) To increase the awareness and knowledge of the youth about the taxation system. b) To clarify and define the taxes that are supposed to be paid by the youth in SMEs. c) To identify the gaps and challenges faced by the youth in SMEs in relation to tax. d) To create awareness on the relevance as to how the youth benefit from being tax compliant. e) To sensitize the youth on the consequences of incompliance. Expected Outcomes a) Increased understanding and appreciation of the DRM project and advantages of being tax compliant. b) Discussions on the experiences and challenges faced by the youth in SMEs. Key Deliverables ● Three Virtual trainings to follow up on the in-person trainings. ● Activity Report Annexes 1. Tentative program 1.5 Tentative Program Date Tuesday, 11/02/2021 Time 8:30am - 9:00am Session Arrival and Registration 9:00a.m - 9:15a.m ● Introductions Resource Person Catherine Everyone Page 3 of 4 9:15a.m - 9:30am ● Who we are/ Overview of YTJN 9:30a.m - 11:00am 11:15a.m - 11:15am Introduction to Taxation Training on VAT Working Tea Team Leader/ Allan Facilitator Hotel 11:15a.m - 13:00pm ● Training of Filing Returns Facilitator 1:00pm - 2:00pm Hotel 2:00pm - 4:30pm 4:00pm - 4:45pm Lunch Break ● Reactions ● Question and Answer Participants ● Remarks from USSIA representative Page 4 of 4