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Article

12 May 2014

Author:
Finbarr Bermingham, International Business Times (UK)

Africa's Poorest Nations Lose Billions to Complex Tax Evasion Schemes

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African countries are losing up to 12.7% of their national GDP due to shady practices in international trade…Global Financial Integrity, a Washington DC-based think-tank, reports that $542bn…worth of capital was lost from Africa in illicit capital flows and estimates that almost 80% of this coming through "trade misinvoicing"…Misinvoicing is where companies and individuals involved in trade deliberately alter the prices of their exports or imports in order to move money in or out of a country…The report, entitled Hiding In Plain Sight, examined trade flows into and out of Ghana, Kenya, Mozambique, Tanzania and Uganda between 2002 and 2011. Uganda lost 12.7% of its national revenue over the 10-year period, the highest of the five countries…Richard Murphy, director at Tax Research…agreed…that…tax avoidance is driven by western companies, some acting legally, others illegally…