Billions are being lost, not collected in taxes due to corporate tax evasion throughout Africa. A Study by a Swedish agency, Forum Syd suggests that Money taken illegally from the developing world is worth 10 times annual global aid budgets, according to a recent study.Tax evasions by multinational companies in Africa is so vast that tax analysts believe that if the money were paid, most of the continent would be “developed” by now. But, lacking a sophisticated tax code, or the people qualified to enforce tax laws, many African countries continue to lose money that could solve most of its financial problems.
This all goes back to weak governing, the state not having competent officials to handle the work in enforcing the tax laws. Just blaming corporations shouldn’t be enough. Some blame has to be directed toward government officials who in many cases allow this to take place. We all know that nothing talks louder than money and bribery is common towards government officials. Another aspect that has to be looked at is modernizing, updating the tax codes that nations have to match one that fits into a globalized world. Money has no borders in this age. What is local is not just national but international. Money has to be looked at in the same way. A more streamlined, less bureaucratic tax code is crucial to be economically competitive. Money will always follow where there is business to be made. In order for this to happen, a business friendly environment has to developed.