@TheEastAfrican

Africa struggles to tackle illicit capital flows

6 months ago, 16 Maý 16:25

By: Christabel Ligami

Lack of cooperation and information exchange between countries is limiting Africa’s efforts to prevent illicit financial flows, experts have said.

Ministers at the UN Economic Commission for Africa’s (Uneca) Conference of Finance say that illicit capital flows from Africa were stifling domestic resource mobilisation efforts.

“The debate is not about the seriousness of the issue. The magnitude is high, is increasing. The challenge is how we can arrest it. This is an African problem. The only way we can resolve together is by working together with our partners,” said Abdalla Hamdok, Uneca’s deputy executive secretary.

They also said that money illegally transferred across borders has more than doubled to $100 billion annually from $50 billion in 2015.

Nara Monkam, Research Director at Africa Tax Administration Forum (ATAF) said inter-country cooperation at a continental level was required to stem the vice.

“It is important to deal with illicit financial flows and its major components which are international commercial transactions including tax evasion, trade misinvoicing, abusive transfer pricing, mostly by multinational corporations, by encouraging inter-country cooperation,” said Dr Monkam.

She added that there was need for the creation of a continental tax body under the support of the African Union Commission where tax related standards in policy, legislation and administration can be established and activities reported to heads of state for adoption.

“Greater funding for technical assistance on tax matters and improvements in tax administrations is needed to enable better domestic resources mobilisation.”

According to Uneca, informal cross-border trade involves movement of legitimately produced goods and services that avoid custom checks, trade misinvoicing and employee misclassification — a practice of labelling workers as independent contractors, rather than employees to avoid paying unemployment and other taxes on workers.

Exportation of primary commodities has intensified social inequalities, Africa warned.


Read More


Category: topnews news business

Suggested

1 hour ago
@CITIZENTV - By: Citizen Team
Rugby ace Lyle Asiligwa goes missing

Asiligwa last played for Kenya Simbas in 2017 under former coach South African Jerome Paarwaters at the Four Nations tournament in Hong Kong. ...

Category: sports topnews news
1 hour ago
@CITIZENTV - By: Reuters
Late goals earn Dutch spot in Nations League finals

Virgil van Dijk struck a superb close-range volley in stoppage time to equalise for the visitors after Quincy Promes had cut the deficit in the 85th minute with the Germans having led through early go ...

Category: topnews news sports
6 minutes
@CITIZENTV - By: Reuters
Faltering malaria fight should refocus on high-risk countries, says WHO

Global health authorities need to counter a worrying lull in the fight against malaria by focusing their efforts on the near-dozen mostly African countries ...

Category: topnews news
16 minutes
@CITIZENTV - By: Citizen Reporter
World Children’s Day: Amnesty pleads for detained families in U.S.

Amnesty International has urged the American Government to release children who are being detained at a South Texas facility. ...

Category: topnews news lifestyle
1 hour ago
@CITIZENTV - By: Reuters
‘El Chapo’ killed man after he refused to shake his hand: trial witness

Joaquin “El Chapo” Guzman was a ruthless killer who ordered the murder of a man who had refused to shake his hand at a meeting, a prosecution witness ...

Category: topnews news
1 hours ago, 10:02
@CITIZENTV - By: Erick Owenga
Heated debate looms over Duale’s two-thirds gender Bill

A heated debate on the two-thirds gender bill proposed by Majority Leader Aden Duale is expected to take centre stage at the National Assembly ...

Category: topnews news

@TheEastAfrican

Africa struggles to tackle illicit capital flows

6 months ago, 16 Maý 16:25

By: Christabel Ligami

Lack of cooperation and information exchange between countries is limiting Africa’s efforts to prevent illicit financial flows, experts have said.

Ministers at the UN Economic Commission for Africa’s (Uneca) Conference of Finance say that illicit capital flows from Africa were stifling domestic resource mobilisation efforts.

“The debate is not about the seriousness of the issue. The magnitude is high, is increasing. The challenge is how we can arrest it. This is an African problem. The only way we can resolve together is by working together with our partners,” said Abdalla Hamdok, Uneca’s deputy executive secretary.

They also said that money illegally transferred across borders has more than doubled to $100 billion annually from $50 billion in 2015.

Nara Monkam, Research Director at Africa Tax Administration Forum (ATAF) said inter-country cooperation at a continental level was required to stem the vice.

“It is important to deal with illicit financial flows and its major components which are international commercial transactions including tax evasion, trade misinvoicing, abusive transfer pricing, mostly by multinational corporations, by encouraging inter-country cooperation,” said Dr Monkam.

She added that there was need for the creation of a continental tax body under the support of the African Union Commission where tax related standards in policy, legislation and administration can be established and activities reported to heads of state for adoption.

“Greater funding for technical assistance on tax matters and improvements in tax administrations is needed to enable better domestic resources mobilisation.”

According to Uneca, informal cross-border trade involves movement of legitimately produced goods and services that avoid custom checks, trade misinvoicing and employee misclassification — a practice of labelling workers as independent contractors, rather than employees to avoid paying unemployment and other taxes on workers.

Exportation of primary commodities has intensified social inequalities, Africa warned.


Read More

Category: topnews news business

Suggested

1 hour ago
@CITIZENTV - By: Citizen Team
Rugby ace Lyle Asiligwa goes missing

Asiligwa last played for Kenya Simbas in 2017 under former coach South African Jerome Paarwaters at the Four Nations tournament in Hong Kong. ...

Category: sports topnews news
1 hour ago
@CITIZENTV - By: Reuters
Late goals earn Dutch spot in Nations League finals

Virgil van Dijk struck a superb close-range volley in stoppage time to equalise for the visitors after Quincy Promes had cut the deficit in the 85th minute with the Germans having led through early go ...

Category: topnews news sports
6 minutes
@CITIZENTV - By: Reuters
Faltering malaria fight should refocus on high-risk countries, says WHO

Global health authorities need to counter a worrying lull in the fight against malaria by focusing their efforts on the near-dozen mostly African countries ...

Category: topnews news
16 minutes
@CITIZENTV - By: Citizen Reporter
World Children’s Day: Amnesty pleads for detained families in U.S.

Amnesty International has urged the American Government to release children who are being detained at a South Texas facility. ...

Category: topnews news lifestyle
1 hour ago
@CITIZENTV - By: Reuters
‘El Chapo’ killed man after he refused to shake his hand: trial witness

Joaquin “El Chapo” Guzman was a ruthless killer who ordered the murder of a man who had refused to shake his hand at a meeting, a prosecution witness ...

Category: topnews news
1 hours ago, 10:02
@CITIZENTV - By: Erick Owenga
Heated debate looms over Duale’s two-thirds gender Bill

A heated debate on the two-thirds gender bill proposed by Majority Leader Aden Duale is expected to take centre stage at the National Assembly ...

Category: topnews news
Our App