Africa losing billions in tax evasion by corporations.
Billions are being lost, not collected in taxes due to corporate tax evasion throughout Africa. A Study by a Swedish agency, Forum Syd suggests that Money taken illegally from the developing world is worth 10 times annual global aid budgets, according to a recent study.Tax evasions by multinational companies in Africa is so vast that tax analysts believe that if the money were paid, most of the continent would be “developed” by now. But, lacking a sophisticated tax code, or the people qualified to enforce tax laws, many African countries continue to lose money that could solve most of its financial problems.
This all goes back to weak governing, the state not having competent officials to handle the work in enforcing the tax laws. Just blaming corporations shouldn’t be enough. Some blame has to be directed toward government officials who in many cases allow this to take place. We all know that nothing talks louder than money and bribery is common towards government officials.
The article talk about weak governing, but corps are the big evaders here. So I guess we should put the blame on them. There is some talk about "modernizing tax codes for a globalized world" that kinda makes me cynical, specially when corruption has a lot to do here. But to be honest, I have no idea what he proposes because I'm not familiarized with how "tax codes" work in these different places. The proposal of a "business friendly environment" when talking about taxes evasion... is weird.