Type of client: IPO Financing and IPO listing
IPO Timeframe: 12 to 24 months
Target Valuation: $6 Billion
MobiVAT is designed to automatically extract taxes rather than leave the payment of taxes to the voluntary choice and morality of taxpayers. By and large, taxpayers of all countries do not want to pay taxes unless compelled by a situation where they are left with no option other than to pay the taxes. The VAT amount element is detached from the buyer’s payment and is remitted electronically to the tax revenue authority from the buyers’ bank account. In doing so, VAT never reaches the account of the merchant. The use of MobiVAT represent an important tax administration initiative, aimed at improving VAT compliance by transmitting transaction records directly to the Tax Revenue Authority in real time and enable Revenue authorities to monitor formal business transactions and thus offer the potential to improve VAT compliance. Collecting taxes is central to a country’s capacity to finance social services such as health and education, critical infrastructure such as electricity and roads, and other public goods. All national treasuries around the globe are indiscriminately being assaulted by criminals and face many challenges in the massive task of tax collection.