Some experts have listed steps that needed to be taken by governments in developing economies, including Nigeria, to tackle the menace of illicit financial flows that had been undermining domestic resources, tax revenues and sustainable development in the affected countries.
Speaking at the 7th International Tax Justice Academy organised by Tax Justice Network Africa (TJNA), one of the experts and Executive Director, African Centre for Tax and Governance, Mustapha Ndajiwo, called on the governments for a review of existing treaties and domestic tax laws and conduct cost-benefit analysis based on investment data to ascertain if DTA remained beneficial or not.
He also urged the strengthening of African Treaty Models such as ATAF, EAC etc and participation in the inclusive framework and push for African interest.
“Focus should be having more taxing rights rather than balanced. There should be public consultation before signing any treaties. All treaties should go through the parliament before approval,” he added.
In his contribution, Professor Alexander Ezenagu of Hamad Bin Khalifa University, Qatar advised African countries to digitise their tax administration and collection systems in line with global standards and practices.
“Tax evasion is aided by human relationships and the potential for capture. Thus, it is important that African countries reduce, as greatly as possible and as efficient, the human interaction in dealings between government bodies and persons,” he explained.
“This can be achieved by embracing technology in the business relationship between governments and persons. ”
On the legislative role of members of parliaments in tackling illicit financial flows the Representative, 54th National Legislature, Republic of Liberia, Francis Dopoh II, urged parliaments to build up capacities frameworks of IFFs; and ensure synchronisation of the various frameworks for domestication, consistent with local capacities.
A Senior Lawyer, and Lecturer University of Nairobi, Layla Lateef , said: “Domestic Resource Mobilisation is a core priority for the continent. We don’t want to keep relying on debt. We have to look at the revenues available locally in our jurisdictions so that we can mobilise them and match them to our spending needs.”
– Daily Trust.