Illicit Financial Flows remain a critical challenge in Africa

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.