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Companies Divert Huge Amounts of Cash Out of Africa



Large corporations conduct vast scams to avoid paying taxes levied by African governments, according to a joint UN–African Union report cited by the Wall Street Journal. Because the governments lack the expertise and enforcement clout to halt such practices, companies frequently underreport the goods they import or sell in order to avoid taxes, and the resulting profits are typically diverted overseas, with the result that as much as $60 billion is illegally moved out of Africa annually, the report says.

These reports will only stimulate Transfer Pricing reviews by African Tax Authorities.

For additional information about Africa specific Transfer Pricing, connect with me on TaxConnections.

SOURCE: Africa Loses $60 Billion a Year Illegally, Report Says

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International Tax Attorney, EA, US Tax Court Practitioner in the USA, Counsel of the High Court in South Africa, adjunct Professor of International Tax at Thomas Jefferson School of Law.

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