Billions of dollars in tax revenues are lost each year to African governments, owing to illicit financial flows and tax avoidance, which impacts countries’ ability to provide services and support industrial development.
Trade & Industry Policy Strategies (TIPS) chairperson and Department of Trade, Industry and Competition industrial procurement chief director Dr Tebogo Makube explains that tax avoidance means legally reducing your taxable income, which has base erosion and profit-shifting affects as a consequence.