(PHOTO CREDITS: Courtesy SMART INVESTOR)
Kenyan head-quartered Tax Justice Network Africa has expressed concerns corona virus pandemic could spark a surge in the scale and scope of illicit financial flows.
TJNA says the overwhelming onslaught of the deadly bug has distracted authorities, a situation that could create lapse in oversight and a spike in corruption activities at border posts.
“COVID-19 has disrupted the way of doing things. With the onslaught of the global corona virus pandemic, there are concerns that the scale and scope of Illicit Financial Flows (IFFs) could be increasing,” said TJNA Executive Director, Alvin Mosioma.
Trade misinvoicing, smuggling and tax evasion are key forms of illicit financial flows in most developing countries.
The latest trade-related Illicit financial flows report by Global Financial Integrity shows that trade misinvoicing is a persistent problem across developing countries, resulting in potentially massive revenue losses.
