Research by the Integrated Social Development Centre (ISODEC) and ActionAid Ghana has revealed that between 2000 and 2013, Ghana lost US$7.4 billion in mis-invoicing in trade with the US and EU.
Losses recorded in trade with the EU accounted for US$6.2billion while the amount lost with US trade was US$1.2billion according to the research.
Illicit financial flows (IFF) are a major issue, ISODEC policy analyst Bernard Anab Speaking told a workshop on tax justice and illicit financial flows where the Ghanaian data was revealed.
“IFF is a global problem and requires stronger collaboration and consistent engagement between Africa and global players such as the US, EU, G8 and G20 to help ensure greater transparency in the international global financial system,” he said.
Banks should ascertain the identity, source of wealth and country of origin of their depositors and their deposits, he added.
To address the problems of IFF, Anab says there is a need to ensure that there are clear and concise tax laws and policies.
“Our customs authorities should begin to use available databases of information about comparable pricing of…goods to analyse imports and exports, and identify transactions that require additional scrutiny,” he said.
To solve the problem of IFF, he advocated the establishment of transfer pricing units in all countries, with the units integrated on a worldwide basis.
Categories: Trade Based Financial crimes News