Thursday, 21 May 2015

Africa Loses $50b Yearly Via Tax Avoidance.

This money, usually made from laundering proceeds of crime, abuse of power, market or regulatory abuse with a considerable portion emanating from tax abuse, comes from commercial and criminal activities, and abuse of entrusted power through corruption.

Companies may hide wealth, avoid taxes and dodge custom duties through transfer pricing and trade mispricing. “Underreporting of profit and misinvoicing of services are also common practices.

Criminals make their money by keeping transactions from view of law enforcers through trafficking of people, drugs and arms, smuggling of oil and minerals.”