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Large corporations often shift untaxed profits through illicit financial flows, making it difficult for Tanzania to collect taxes due to legal limitations
Tax stakeholders have urged the Tanzanian government to adopt the UN Tax Convention to increase revenue collection and plug tax evasion loopholes.
The call was made recently, during a breakfast debate organized by the Policy Forum in collaboration with the Norwegian Church Aid and the Interfaith Standing Committee on Economic Justice and Integrity of Creation (ISCEJIC).
Breakfast meeting participants believe the UN Tax Convention could significantly boost Tanzania’s tax collection ability, address the challenge of illicit financial flows (IFFs), and improve public service delivery.
Saint Augustine University of Tanzania (Saut) lecturer Norah Kawiche highlighted the challenges posed by an interconnected global economy.
Large corporations often shift untaxed profits through illicit financial flows, making it difficult for Tanzania to collect taxes due to legal limitations, she said.
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She added that adopting the UN Tax Convention would enable Tanzania to collaborate with other countries in exchanging crucial information on tax evasion and avoidance. While bilateral agreements have been beneficial, Tanzania has signed tax treaties with only nine countries, compared to South Africa’s 80.
