FINANCE MINISTER ENOCH GODONGWANA IS URGING TAX TRANSPARENCY

Finance Minister Enoch Godongwana has highlighted the need for African countries to prioritize tax transparency as a strategy to combat tax evasion and illicit financial flows. He expressed concern about the significant amount of money that Africa loses each year due to these issues, citing estimates from the African Union Commission. South Africa’s recent grey listing by the Financial Action Task Force due to deficiencies in its anti-money laundering framework adds urgency to the situation.

Godongwana emphasized the effectiveness of international tax transparency standards in reducing tax evasion and generating additional revenue for public services. He called on the Global Forum to continue supporting African countries in using the Exchange of Information (EOI) standards to their full potential. Tax administrations play a vital role in collecting revenue for governments, but they face challenges in countering tax evasion and illicit financial flows. Equipping tax administrations with the necessary tools, such as tax transparency through EOI, is crucial.

The Africa Initiative meeting, attended by revenue authorities, representatives, experts, and organizations, coincided with the launch of Tax Transparency in Africa 2023. The report showcased the progress made by African countries in addressing tax evasion and illicit financial flows through tax transparency and EOI. It revealed that African countries collectively collected over €310 million through the exchange of information since 2014. Additionally, they identified €1.69 billion in additional revenues through voluntary disclosure programs, EOI, and investigations of offshore income and assets.

Sars Commissioner Edward Kieswetter emphasized the importance of tax transparency standards and collaboration among African countries to increase government revenue. He highlighted the shared ambition of effective resource mobilization to tackle poverty, unemployment, and inequality in Africa.