TaxJusticeAfrica: February 2008

Monday, February 25, 2008

Ghana: No Incentive Needed for Investing in the Mining Sector - Tax

25 February 2008 (Allafrica.com)
An international tax expert, Mrs. Susan Himes wants Ghana to take a critical look at her corporate tax policy, with particular reference to tax incentives.
According to her, majority of econometric studies (application and interpretation of economic issues in mathematical terms) show that the cost of tax incentives in the form of lost revenue exceeds the benefits of increased investment

Friday, February 22, 2008

Ghana: Mining Companies Turn the Heat on Govt

22 February 2008 (Allafrica.com)
The President of the International Council on Mining and Metals (ICMM), Mr. Paul Mitchell has pointed out that the underdevelopment in many mining communities in the country could partly be laid at the door steps of present and past governments

Wednesday, February 20, 2008

Zambia: New Tax Regime Non-Negotiable

20 February 2008. (Allafrica.com)

PRESIDENT Levy Mwanawasa's invitation to mining companies is not to renegotiate development agreements or the new tax regime for the mining industry.

ABOUT TAX JUSTICE

Increasing foreign aid to Africa is often viewed as the panacea to address the poverty facing the continent. While the role played by international aid can not ignored there is an important element which is often ignored in this debate: the issue of the massive resource outflow from the continent.

The African Union estimates that up to US$ 148 billion is taken out of the continent annually because of corruption. These amounts exceed the current aid flow by a significant margin. It is indeed estimated that for every dollar that flows into the continent in terms of foreign aid and loans, there are 8 dollars flowing out through corrupt practices.

Issues around the massive resource outflow and its effects on the fledging economies of Africa have not been accorded due attention. The illicit capital flight and associated tax evasion , tax competition, transfer mis-pricing, revenue losses due to import tariff reduction brought by market liberalization, and other related aggressive tax avoidance malpractices by both MNCs and other rich elites in Africa have all significantly led to accelerated capital flows out of Africa.

The debate on economic development of the continent and the reduction of poverty would be missing a very important component if factors that encourage resource outflow, hamper domestic resource mobilization and encourage reliance on external financing for development are not addressed. There is need to raise the awareness among different actors of the impact these outflows have in hampering economic growth in Africa.

TaxJusticeAfrica