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Article

17 Jun 2015

Author:
ActionAid

ActionAid report on how Malawi has lost US$43 million in revenue over the last six years

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"An Extractive Affair: How one Australian mining company's tax dealings are costing the world's poorest country millions”

Malawi, the poorest country in the world, has lost out on US$43 million in revenue over the last six years, from a single company – the Australian mining company Paladin. The money has been lost through a combination of harmful tax incentives from the Malawian government, and tax planning using treaty shopping by Paladin.

Tax pays for public services such as education, health care and social services, crucial for women, who often end up as the unpaid providers in the absence of decent public services. It also pays for infrastructure to provide clean water, functioning roads and communication systems, all of which are essential for a country to develop and for business to operate.