Africa: Fair global tax rules needed to combat corporate tax evasion, mobilise development revenue, says analyst

Author: Sipho Mthathi, Oxfam So. Africa in allAfrica, Published on: 2 June 2015

'Africa: A journey toward an African tax renaissance', 2 Jun 2015: [How can] Africa…a continent so rich in natural resources be so poor? Economic growth is predicted to increase…[h]owever…public coffers…[strain to provide] public services like health; education, housing…It is urgent that collectively, African nations look at the billions of dollars flowing out of Africa…most of which can be attributed to corporate tax dodging…Multinational companies are gaining…through other ‘legal’ forms of corporate tax dodging, and…negotiated tax breaks…because of a lack of fair global tax rules, and behind-closed-door deals…[with] governments…[T]hese losses in tax revenue come…when…development assistance to Africa is declining….Establishing an effective tax system is critical if Africa is going to mobilise the resources it needs to tackle poverty and inequality…[T]ax revenues for…essential services for…citizens…investment [in]…agriculture…[and] infrastructure could come from the recovery of billions…lost…[to]…corporate tax dodging and unfair tax competition…It is time for a global inter-governmental body on international tax cooperation to allow for a more inclusive and coordinated approach to ongoing tax reform…

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