Data Exchange, DPI and Taxation

Effective data exchange is arguably the most important of the three DPI building blocks. Unlike digital IDs and digital payments, which function as discrete infrastructure layers, data exchange is what connects them: without it, the data locked in identity systems and payment platforms cannot flow to where it is needed for tax administration. Digital IDs hold the promise of unlocking data sharing across government, but in practice data rarely flows effectively between tax administrations, other public institutions, the private sector, and foreign jurisdictions. Legal restrictions, weak technical systems, and political resistance all play a role. Without progress on data governance, the broader potential of DPI for revenue mobilisation will remain out of reach.

This ICTD research area examines the legal frameworks, governance structures and administrative systems needed to support secure and effective data exchange across institutions, including:
– Investigating how governments can protect taxpayers’ rights and privacy as DPI is rolled out at scale, and what conditions have enabled data exchange to work in practice.
– Examining how African revenue authorities engage with international exchange of information frameworks alongside domestic data exchange and whether applying DPI principles could better connect the two, with a focus on taxing high net worth individuals.

The research is focused on Ghana, Kenya, Senegal and South Africa.