Illicit flows worry ZRA
Zambia Revenue Authority-ZRA- Commissioner General Berlin Msiska says Africa needs to work together to address illegal Financial Flows.
Mr Msiska says international cooperation is required because illegal financial flows affect all regions of the continent.
He says African Tax administrations can achieve a more effective and efficient relationship through initiatives that include Creation of segmentation of taxpayers into Large, Medium and Small taxpayers with sector specialisation.
Mr Msiska noted that African tax administrators face a challenge of Multinationals (MNEs) practising complexities in tax planning through Base Erosion and Profiting Shifting (BEPS), Transfer pricing, Treaty Shopping among others.
He said this at the on-going 2nd ATAF International Conference on Tax in Africa in Lome, Togo.
Mr Msiska was speaking when chairing a session on “Rationalising the phenomenon of Illicit Flows and the recommendations of the Thabo Mbeki High Level Report on Illicit Financial Flows.
And Chairperson of ATAF Council, Gershem Pasi who is also Zimbabwe Revenue Authority -ZIMRA- Commissioner General said Africa does not need to look beyond its borders in order to raise enough revenue for its development.
He said Multinational corporations have taken Africa for a ride, hence it was time for Africa to start cooperating with each other to the point that it can conduct joint Audits on Multinational corporations.
Mr Pasi said with the abundant natural resources that the continent is endowed with; Africa is too rich to be poor.
He said African countries have a tendency of giving huge incentives to Multinational Corporations especially in the mining sector at the expense of their local economies without properly negotiating with these investors.
Mr Pasi encouraged African countries to work together and realise a common African dream.
According to the Thabo Mbeki Report from the High-level Panel on Illicit Flows, it is estimated that Africa has lost more than US $ 50 billion per annum since 2000, which is approximately double the Official Development Assistance (ODA) that Africa receives.
