Tax evasion: Kofi Annan wants African tax authorities linked to global reforms
Former UN Secretary-General Mr. Kofi Annan is calling for a link between tax authorities in Africa and global reforms to avoid tax evasion.
According to the Ghanaian diplomat, African tax authorities suffer more among all regions struggling to prevent the erosion of tax bases.
Mr. Annan made this known in an op-ed published by the Australian Financial Review ahead of G20 leaders’ commitment to discuss global tax reform when they meet in Russia next week. The op-ed was also on why Australia should work towards building a better mining partnership with Africa.
“Tax authorities in all regions struggle to prevent the erosion of tax bases, but Africa struggles more than most,” Annan said.
Mr. Annan stated “automatic information exchanges must also extend to African tax authorities, who would benefit from capacity building to tackle tax evasion and illicit transfers of wealth.”
According to Mr. Annan who also chairs the Africa Progress Panel which advocates for equitable and sustainable development in Africa, investments in Africa must be seen to be transparent to create the long-term partnerships needed for generating the best returns.
Australia is set to take the leadership of the G20 group later this year and Annan stated that the G20 must enforce transparent beneficial ownership.
He said “The extensive use of tax havens, shell companies and multi-layered companies actively facilitates corruption by hiding the flows and recipients of major financial transactions.”
Annan observes that many anonymous shell companies are registered in tax havens in G20 countries. He further stated “G20 countries should demand full disclosure of the beneficial ownership of registered companies on open public registers. In this way, citizens groups and journalists alike, as well as law enforcement authorities, can follow the money and help to root out corruption.”
Annan also wants the issue of transfer pricing tackled. He revealed that between 2008 and 2010, transfer pricing alone cost Africa an average $38.4 billion ($42.9 billion) every year. This amount, Annan said is more than the average annual $29.5 billion worth of international aid to the continent for the same period.
Mr. Annan said Africa and Australia have common interest in creating a predictable and fair global business environment.
By Ekow Quandzie
This real and clear, Mr. Annan will always be the great statesman I ish we have a lot of Mr. Annan in Africa. Australia knows and understand ethics they need to show the how different and transparent they are else they lease being what they said they