Illegal Financial activity in Africa is costing the continent close to $1.2 billion annually mostly through tax evasion.
This has been revealed by a new joint survey conducted by the Organization for Economic Co-operation and Development (OECD), African Development Bank(AFDB), France, United Kingdom.
“Apparently, the global stage faces losses of approximately $88.63 billion to the illicit financial flows as well as tax evasion and avoidance, while Kenya is facing losses annually of about 43 billion dollars in illicit funds transfers,” said Foreign Affairs Cabinet Secretary Raychelle Omamo, during the launch of Africa Summit on Tax Transparency Report in Nairobi.
She urged African states to implement tax transparency to spur economic growth.
“If we can all implement tax transparency within our countries then we can save $ 1.3 billion which can additional revenue in taxes, interests, and penalties. Let us all embrace the exchange of financial information to counter illicit financial flow in the continent.”
KRA Commissioner General and chair of the Africa Initiative, Githii Mburu, recognized the commitment and determination of members especially following the COVID-19 pandemic.
“I wish to applaud the members of the Africa Initiative for their commitment and resilience in implementing tax transparency standards during the difficult times occasioned by the COVID-19 pandemic.”
The Commissioner-General further pointed out the need for the establishment of well-functioning competent authorities in tax administrations.
“We need a continental training program that will help tax officials to operate across the border,” he added.
Members and partners of the Africa Initiative agreed to:
- Help
new members implement the core stage of tax transparency and EOI. - Continue
building political awareness throughout Africa. - Increase
the efforts on transparency of beneficial ownership information and
automatic exchange of financial information (AEOI). - Exploration
of new enhanced building blocks.
