Illicit Financial Flows remain a critical challenge in Africa

LUKENYA, KENYA: Many African countries continue to experience severe illicit financial flows (IFFs) that over the years have crippled their economies due to losses of revenue through the multitude of loopholes that riddle the financial systems.

Sharing their country experiences at the just ended Tax Justice Network (TJN) organised International Tax Justice Academy training workshop held in Lukenya, Kenya, participants expressed concern over countries that hike particular tax creating opportunities for people to shuffle round their assets and income in order to evade paying tax by moving them offshore. It emerged that while tax leakages hit developing countries, Botswana included, they were orchestrated mostly by some private accountants, lawyers, banks and to some extent secrecy tax havens, in the tax planning purposes.

Presenting at the academy, Global Alliance for Tax Justice (GATJ), regional coordinator, Caroline Othim said although tax evasion is illegal in many respects, its avoidance is however acceptable as a respectable way of doing international business. She was however quick to state that in almost all the African countries, there are tax havens that perpetuate high levels of confidentially , to hide income from tax and they continue to shelter criminal tax practices.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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