Information and communication technologies (ICT) in the digital age are essential tools for
any organizational and operational system. Used in almost every field, especially in industry
and commerce, these tools streamline processes through task automation and rapid
information processing. The use of digital technology through ICT allows for better control
over the production and invoicing mechanisms and processes used by companies, and has
become essential for economic interoperability among countries. Recognizing this global
trend, Cameroon, not being economically self-sufficient, has followed suit and aligned itself
with the recommendations of the OECD. Accordingly, the tax legislature, through Article M 8
a of the 2024 Finance Law, requires certain companies to comply with electronic tracking of
invoicing and production. While it is true that this tracking was introduced in Cameroon by the
2015 Finance Law, it is only through the 2024 Finance Law that its scope and sanction
regime have been defined. The obligation requires targeted companies to provide upstream
information on the manufacturing process, as well as the volume and cost of production of
goods; and downstream, to maintain and receive invoices in electronic form. This presents a
major challenge for sales and expenditures monitoring to avoid fraud and accrue tax
revenues. The law specifies that the conditions for this tracking will be defined by an order
issued by the Minister of Finance. while awaiting the advent of the said order it is appropriate
to examine its scope. This leads to identifying the liable taxpayers (I) and the sanction regime
for non-compliance with this obligation (II).
I. Liable companies.
The obligation to comply with the electronic tracking system for invoicing and production
applies to companies in certain sectors of activity listed in the law, as well as those falling
under the authority of the Large Tax Payers Unit (DGE). For companies in the listed sectors,
as stated in the first paragraph of Article M 8 a of the 2024 Finance Law, it concerns those
operating in information and communication technologies (ICT) and online commerce. It also
includes companies operating in the sectors of electricity, insurance, beverages, and oilseed
products. The legislature further specifies the sectors of games of chance and entertainment
and digital bouquets sectors. Regarding companies falling under the DGE, reference should
be made to Circular No. 006/MINFI/SG/DGI/DR of April 28, 2014, which specifies the criteria
for assigning taxpayers to management units of the Directorate General of Taxation.
According to this document, affiliation with the DGE depends either on the annual turnover or
the sector of activity. Thus, companies with an annual turnover, excluding taxes, equal to or
exceeding three (03) billion FCFA are assigned based on turnover. Companies operating in
sectors such as banking, upstream oil, mobile telephony, and mining are assigned to the
DGE due to their sectors of activities regardless of their turnover. It should be noted that the
companies listed are required to comply with this tracking process. It can be reasonably
inferred that the legislature primarily targets sectors with significantly high value-added
creation. Non-compliance with this legal obligation exposes offenders to severe and varying
sanctions.
II. Sanction regime
Failure to comply with the obligations related to electronic tracking of invoicing and
production exposes offending companies to both tax and criminal penalties. In terms of tax
sanctions, according to the provisions of paragraph 2 of Article M 8 a, there is a fine that
depends on whether the violation pertains to electronic tracking of invoicing or production. In
the case of electronic tracking of invoicing, the fine corresponds to the amount of the invoices
affected by the violation. For electronic tracking of production, the fine is equal to the value of
the concealed production resulting from the violation. It should also be noted that these fines
are applicable without prejudice to the recovery of evaded taxes. Regarding criminal
sanctions, paragraph 2 of Article M 8 a state that the offender is liable to the penalties
provided for in Articles M 108 and following of the Tax Procedure Code. From the combined
reading of these articles, it involves imprisonment from one (1) to five (5) years and a fine
ranging from five hundred thousand (500,000) to five million (5,000,000) FCFA, or only one
of these two penalties. The sanctions apply to any person who, in this case: fails to record or
causes inaccurate or fictitious entries in the daybooks and inventory books provided for by
the OHADA Uniform Act; conceals a portion of the amounts subject to tax or organizes
insolvency, or obstructs tax collection; organizes or attempts to organize, through force,
threats, or concerted manoeuvres, collective refusal to pay taxes, or incites the public to
refuse or delay payment of taxes. The penalties set forth are doubled in the event of a repeat
offense by the offender.
In conclusion, the obligation to comply with electronic tracking of invoicing and production,
established by the 2015 Finance Law and elucidated in the 2024 Finance Law, targets
companies operating in the listed sectors of activity. Non-compliance with this requirement is
subject to both tax and criminal sanctions. This tracking system appears to the tax
administration as an effective means of controlling companies’ production upstream and the
accuracy and regularity of their invoicing downstream. It also guarantees proficient tracking
on suppliers’ invoices and thus a better and efficacious control of business expenses. It is
clear that the objective of the new measures seeks to ensure more and more Tax revenues.
Therefore, it is the responsibility of the state, once the order made by the minister of Finance,
to ensure effective and transparent monitoring of this process.
Author: Jean Didier Ozoto, Tax & Legal Consultant; Supervisor: Albert Désiré Zang, Managing
Partner