Africa’s MPs agrees to Collaborate to End Illicit Financial Flows
By KURIAN MUSA
Africa is making fast paces towards self-reliance on its own resources as legislators from 33 different countries agreed to work together in curbing illicit Financial Flows and Tax evasion in the Continent.
In a meeting in Arusha, Tanzania, the APNIFFT) which also focused on Tax and Human rights issues, the MP’s unanimously supported push against illegitimate financial flows.
The members of parliament from various countries in Africa made resolutions to work together with the civil society in a capacity building efforts on knowledge on illicit Financial Flows. The knowledge is critical for governments signing contracts with multi-nationals companies.
According to Khanyisile Tshabalala, Chairperson APNIFFT, illicit financial flows are responsible for draining the African Continent resources and are revenue mobilization efforts.
“Abusive transfer pricing and related commercial activities attributed to multinational companies operating on the continent represent a significant source of this outflow,” said Tshabalala.
In an in depth observation, Lack of political will was mentioned to be the main challenge faced by administrators working on taming the vice.
Executive Director Tax Justice Network-Africa Alvin Mosiom said: “Issues of illicit financial flows and tax justice are not just a technical issue but are political issues which also require political will. Members of Parliament have a responsibility through the legislature to push for the enactment of policies and laws that support effective domestic resource mobilization in Africa.” He urged the MPs to use various house committees and avenues to alleviate tax evasion and IFFS to allow African Countries to rely on their own resources.
The Director of Strategy and Planning at the Africa Tax Administration Forum (ATAF), Lincoln Marais said; “The political spectrum does not understand all the issues involved in tax administration so we are very excited about APNIFFT as it provides a platform for the support that tax administrators need.”
Through the forum, African legislators share ideas and knowledge that enable them to have a sustained advocacy related discourse and debate in a simplified manner on illicit Financial Flows, Tax governance and domestic resource mobilization in the African region.
An institutional foundation for the discourses was laid down by the parliamentarians including adoption of the constitution that will guide them. The MPs developed agreed to collaborate in the efforts to curb tax evasion by the multi-nationals and those dealing in illegitimate trade.
Tax Justice Network- Africa and the East Africa Tax and Governance Network held a consultative workshop in Arusha, Tanzania involved eight civil society group representatives in the discussions with the legislators.
A damning report released recently by Development Initiatives released in May, 2016 in Nairobi shows that
Tax Policy (Tax regimes) for Developing Countries is hampered by insufficient knowledge on the high levels of illegal tax flows by legislators.
Good signs are beginning to show. For example, the republic of Uganda found out that the country was losing a lot of money because more multinational firms were structuring their transactions with links to these countries. Consequently, Uganda has started renegotiating treaties on taxation it signed with countries such as Netherlands and Mauritius, which are known to be low-tax jurisdictions.
