TaxJusticeAfrica

Monday, August 18, 2008

South Africa: Country's Changing Tax Laws 'Undermining Investor Confidence'

18 August 2008(Business Day-Johannesburg)
CONSTANT changes to SA's tax law changes were undermining investor confidence, especially as many of them had been imposed with retrospective effect, Ed Liptak, director of corporate tax at commercial law firm Webber Wentzel, said at the weekend

Friday, August 15, 2008

South Africa: Former SARS Official Denies Tax Evasion Charges

15 July 2008 (Allafrica.com)
SOUTH African Revenue Service (SARS) commissioner Pravin Gordhan's former right-hand man, Edward Mushanganyisi, appeared in the Johannesburg Magistrate's Court yesterday on tax evasion charges.

Tuesday, August 12, 2008

Uganda: Dealing With Taxation Issues in a Partnership

12 August 2008(Allafrica.com)
This is the third in series of my articles for this column discussing the common structures of doing business in Uganda, and the respective tax implications of each of the structures. In this article, I will look at the tax implications of trading as a partnership..

Tuesday, August 5, 2008

Liberia: 'We've done Nothing Wrong' - BRE Boss, As Dr. Tolbert Makes First Comments

5 August 2008 (Allafrica)
Buchanan Renewable Energies (BRE) has sharply reacted to reports of tax waiver saying it has done nothing wrong during the negotiation process with the Government of Liberia.

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.