{"id":18575,"date":"2014-05-15T09:03:33","date_gmt":"2014-05-15T09:03:33","guid":{"rendered":"http:\/\/4cd.e16.myftpupload.com\/?p=18575"},"modified":"2014-05-15T09:29:45","modified_gmt":"2014-05-15T09:29:45","slug":"trade-misinvoicing-cost-ghana-3-86bn-report","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2014\/05\/trade-misinvoicing-cost-ghana-3-86bn-report\/","title":{"rendered":"Trade misinvoicing cost Ghana $3.86bn – Report"},"content":{"rendered":"
Government lost potential tax revenue of $3.86 billion \u00a0between 2002 and 2011, representing\u00a0an average of $368 million a year, to trade misinvoicing<\/p>\n
A new report released on May 12. 2014 by Global Financial Integrity (GFI), a Washington DC-based research and advocacy organisation said through these fraudulent trade transactions, $14.39 billion in illicit capital flowed either into or out of Ghana due to trade mis-invoicing, while under-invoicing of exports amounted to $5.1 billion and under-invoicing of imports came to $4.6 billion.<\/p>\n
The report said the under-invoicing of exports was the primary method for shifting money illicitly out of the country while the under-invoicing of imports was used mainly to illegally smuggle capital into the country.<\/p>\n
As a result of these illicit financial deals, Ghana\u2019s tax loss has been put at roughly 11 per cent of total government revenue during the 10-year period.<\/p>\n
Apart from Ghana, the study, funded by the Ministry of Foreign Affairs of Denmark, also looked at four other African countries, namely Uganda, Mozambique, Kenya and Tanzania, and found that the over-invoicing and under-invoicing of trade transactions allowed at least $60.8 billion to be illegally taken into or out of the five countries between 2002 and 2011.<\/p>\n
In the case of the other four countries, the potential average annual tax loss from trade misinvoicing during the 10 years reviewed amounted to $2.43 billion or roughly 12.7 per cent of Uganda\u2019s total government revenue; $1.68 billion for Mozambique (10.4 per cent); $3.92 billion for Kenya (8.3 per cent); and $2.48 billion for Tanzania (7.4 per cent).<\/p>\n
\u201cIt is deeply disconcerting that illicit financial flows are taking such a serious toll on the economies of Ghana, Kenya, Mozambique, Tanzania, and Uganda,\u201d noted Mogens Jensen, Danish Minister for Trade and Development Cooperation.<\/p>\n
\u201cDenmark has for several years supported Ghana, Kenya, Mozambique, Tanzania, and Uganda in fighting poverty and promoting economic growth and job creation.<\/p>\n