Speaking during the 12th Competent Authorities Conference of the Global Forum on Transparency and Exchange of Information for Tax Purposes in Victoria Falls, Mnangagwa said Africa lost an estimated US$88 billion annually through illicit financial flows. It has also established frameworks for beneficial ownership transparency and preparing to implement the Automatic Exchange of Information (AEOI), a critical tool in detecting offshore tax evasion. Mnangagwa said resources lost through illicit financial flows should have been used to finance schools, hospitals, infrastructure and jobs had they not been siphoned away through secret jurisdictions, shell companies and opaque structures that created tax havens for illicit wealth.
“Such practices erode sovereignty, undermine trust and deprive citizens of opportunities. Accordingly, as competent authorities, you have been assigned the responsibility to address these challenges,” he said. “Beyond revenue mobilisation, your work strengthens accountability and builds the confidence of citizens in public institutions, assuring them that justice and fairness are not ideals, but realities that can be delivered.” The deputy minister said many developing countries faced constraints in capacity, technology and access to information despite progress achieved over the years.
“These obstacles can hinder efforts to enforce tax laws, combat illicit financial flows and fully participate in global initiatives,” he said. “To build an inclusive and fair international tax system, technical assistance, infrastructure investment sustained knowledge-sharing must be sustainably scaled up.”
Source: NewsDay
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