OECD Tax Forum Address by the Deputy Minister of Finance

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South Africa’s Deputy Minister of Finance recently spoke at the OECD Forum on Tax Administration, highlighting the global shift toward smarter, more modern tax systems, and what this means for countries like South Africa. The key points from the speech are highlighted below.

Global Cooperation Is Crucial

The Deputy Minister stressed that no country can manage tax challenges alone anymore. International bodies like the OECD, IMF and Global Forum are helping countries improve:

• Tax transparency

• Information sharing

• Domestic Resource Mobilisation (DRM)

• Capacity building for developing countries

These partnerships are helping close gaps between developed and developing tax systems.

Pandemic Lessons Still Shape Tax Systems

During COVID-19, more than 50 tax administrations worked together to keep revenue flowing and support relief programmes. This crisis pushed tax systems to modernise quickly — and many of those digital changes have now become permanent.

Tax Administration 3.0: The Future Is Digital

The OECD’s Tax Administration 3.0 model aims to make tax compliance:

• Easier

• More automated

• Integrated into everyday life.

This means practitioners can expect more digital processes, more real-time data, and stronger system integration in years to come.

Good Policy Needs Good Administration

The Deputy Minister emphasised that strong tax laws only work if supported by a modern, capable revenue authority, and vice versa. Policy and administration must stay aligned to build trust and support voluntary compliance.

The Revenue Gap Remains Large

On average:

• OECD countries collect 33.9% of GDP in taxes

• African countries collect 15.1%.

This highlights the urgent need for stronger tax systems, better technology, and skilled revenue administrations across the continent.

Developing Countries Can Leapfrog Ahead

A positive insight: developing countries don’t need to follow old systems, they can adopt proven technologies and skip outdated stages entirely, accelerating reform.

A Call to Build AI-Ready Tax Administrations

Finally, the Deputy Minister encouraged all countries to prepare for the next phase: tax systems built for the age of artificial intelligence systems that are:

• Trusted

• Digital

• Efficient

• Well-resourced.

Read the full Key Note Address on the National Treasury’s website.