Oxfam, a multinational
organisation, says Africa is haemorrhaging billions of dollars because multinational companies are cheating African governments out of vital revenues by not paying their fair share in taxes.
This is contained in a statement issued by the organisation, interested in combating poverty, and made available to newsmen in Abuja, recently.
The statement noted that the Addis Abbaba conference scheduled for July, will set out how the world will finance development for the next two decades.
Oxfam urged all governments to send their Head of State and Finance Ministers to the Financing for Development Conference in Ethiopia, in July.
It noted that it was also an opportunity for governments to start developing a more democratic and fairer global tax system.
According to Oxfam report, ‘Africa: Rising for the few,’ Africa was cheated out of US$11 billion in 2010 through just one of the tricks used by multi-national companies to reduce tax bills.
It said it is equivalent to more than six times the amount needed to deliver universal primary healthcare in the Ebola affected countries of Sierra Leone, Liberia, Guinea and Guinea Bissau.
The statement said Oxfam’s findings come as African political and business leaders get set to attend the 25th World Economic Forum Africa in South Africa.
It said the main theme of the meeting will be how to secure Africa’s economic rise and deliver sustainable development.
It stressed the need to reform global tax rules so that Africa can claim the money it is due and which is needed to tackle extreme poverty and inequality.
It added that this was critical if the continent is to continue its economic rise.
The statement quoted Oxfam International’s Executive Director, Winnie Byanyima, as saying “Africa is haemorrhaging billions of dollars because multi-national companies are cheating African governments out of vital revenues by not paying their fair share in taxes.
“If this tax revenue were invested in education and healthcare, societies and economies would further flourish across the continent.
“African leaders must not sit by while international tax reforms are agreed, which give multinational companies free reign to sidestep them
“Political and business leaders must put their weight behind the ever louder calls for the reform of global tax rules”, he stated.
The statement said existing international efforts to tackle corporate tax dodging such as the Base Erosion and Profit Shifting (BEPS) process, will leave gaping tax loopholes that multinational companies can continue to exploit across the developing world.
It noted that the effort was being led by the Organisation for Economic Cooperation (OECD) for the G20.
The statement noted that many African nations had been shut out of discussions on BEPS reform and will not benefit from them as a result.