ActionAid is calling on African governments to review their existing double taxation treaties.
They are also asking them to pay that special attention to OECD countries and tax havens, examine the scope for renegotiation or cancellation, and check the terms if the treaties facilitate illicit financial flows or give up too many taxation rights.
An African Union Finance Ministers meeting in Abuja, Nigeria noted that “illicit financial flows deprive Africa of billions of dollars each year, more than is received in overseas development aid or foreign direct investment combined.”
They also pointed out that multinational companies which are extracting resources or selling their goods and services in Africa are “contributing little in the way of taxes” which consequently deprives “some of the world’s poorest countries of money vitally needed to pay for schools, hospitals and other essential services.”
They therefore urged African countries to be “very cautious about signing any new double taxation agreements. Transparency and public scrutiny is key.”
Attached is the full statement from ActionAid
ActionAid Media Briefing – Illicit financial flows and tax avoidance in Africa
By: Efua Idan Osam/citifmonline.com/Ghana