African Countries Generate €1.7 Billion From Battling Tax Evasion, Illicit Financial Flows

African Countries Generate €1.7 Billion From Battling Tax Evasion. This is a result of efforts made to fight tax evasion and illicit financial flows in the continent.

According to the 2023 Tax Transparency in Africa progress report unveiled at the 13th Meeting of the Africa Initiative in Cape Town on the 7th of July, Africa was able to realize this huge amount thanks to voluntary declarations, information exchange, and metuculous investigations.

The report which was co-produced by the Global Forum on Transparency and Exchange of Information for Tax Purposes, the African Union Commission and the African Tax Administration Forum, with support from the African Development Bank, shows the progress of 38 African countries in fighting tax evasion and other illicit financial flows

According to the Organisation for Economic Co-operation and Development (OECD), Africa loses close to $60 billion each year in illicit financial flows.

African Countries Generate €1.7 Billion From Battling Tax Evasion : Some Main Highlights Of The Report

The head of the Global Forum Secretariat, Zayda Manatta, presented the report, and here are some of the main highlights:

1. Ten African nations have committed to automatic exchange of financial account information (AEOI) by a specific date and more countries are anticipated to participate in the foreseeable future, with the help of the Global Forum and its partners.

2. Occurring for the first time, one African country reported the accumulation of supplementary taxes worth €10.6 million by employing the common reporting standard data.

3. 23 African countries are now parties to the multilateral Convention on Mutual Administrative Assistance in Tax Matters.

4. The Republic of the Congo, Angola, Zimbabwe and Sierra Leone have joined the Global Forum as 165th, 166th, 167th and 168th members since June 2022.

Manatta Continues:

During her presentation, Manatta quoted a World Bank study that projected that taking part in exchange of information mechanisms could boost African countries’ tax revenues from 5% to 19% of GDP.

She mentioned that if African countries can utilize this tool well, they should be able to generate lots of revenue.

The Africa Initiative

Established in 2014, the Africa Initiative is a partnership of the Global Forum, 33 African countries and 16 partners, including the African Development Bank, the African Union Commission, the European Union, and the governments of Switzerland and the United Kingdom.

The aim of the initiative is to ensure that African countries are equipped to take part in advances on global transparency, to better tackle tax evasion and other illicit financial flows.

The 13th Meeting of the Africa Initiative whch took place on the 6th and 7th of July 2023, was attended by tax commissioners, high-ranking representatives, experts, as well as regional and international organisations and the civil society.

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