The Convener of the Tax Justice Coalition, Benard Anaba has called for a change in the neoliberal agenda where the government receives limited taxes from private sectors to make the state stronger to take care of its citizens especially in an event of a pandemic. Speaking on GBC URA Radio, Mr. Anaba further observed tax haven exploits the fact that many people in other countries want to pay less tax noting that if there were no tax havens, there would be far less constraint on how much mainstream governments could tax their population. He stressed the need for citizens to honor their tax obligations to the state.
Mr. Anaba raised concern over the controversial Agyapa Royalties deal that forms part of the government strategy to beat the long-standing problem of lack of capital for development projects. The deal involves securitizing future flows of revenue with proceeds from the extractive sector. The Agyapa Royalties Ltd is incorporated in Baileick of Jersey in the UK, a tax haven to cut out the associated high tax charges to the returns that will accrue to the state from the investments.
Tax Havens facilitate tax evasion by enabling individuals and businesses to trade free from taxes and financial regulations under systems of guaranteed secrecy. Tax havens are firmly entrenched in the global financial system, being involved in 50 percent of all world trade. Developing countries have a particular need to increase their tax revenue, to ensure that they can pay for essential activities. However, they tend to rely more heavily on consumption taxes to raise revenue, although these have a disproportionate impact on women and poorer people. Tax evasion and avoidance rob the world’s poorest people while the rich get even richer. Tax Justice seeks to restore the taxes to whom they are due.
There are lawyers, accountants, bankers, and tax specialists who work together to make sure that individuals and corporations pay as little tax as possible. This occurs through legal mechanisms (tax avoidance) and illegal (tax evasion. Meanwhile, corporate tax avoidance and evasion are taking place on a massive scale, effectively shifting tax contributions from the wealthiest groups in society to the poorest. The Tax Justice Network (TJN) brings together charities, non-governmental organizations, trade unions, social movements, churches, and individuals with a common interest in working for international tax co-operation and against tax avoidance, tax evasion, and tax competition.
Apexnewsgh.com/Ghana/Contributor: Prosper Adankai
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