Author: Gino Brunswijck

TRANSPARENCY RULES: SHEDDING LIGHT ON OBSCURITY?

The European Parliament has voted on enhancing the transparency of tax payments made by multinationals in different countries. A broad majority of MEPs[1] introduced public, country by country reporting (CBCR), obliging companies with a revenue of 750 million € to disclose information on their profits, turnover, taxes, number of employees, and other relevant financial information in all countries where they operate. However, a “loophole amendment” was introduced, which would absolve companies from CBCR if there are concerns of revealing “sensitive information”… The issue The public outcry after the release of Luxleaks, Swissleaks, Bahama Leaks and the Panama Papers has...

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Dodging development : trade mispricing

One of the reasons African countries miss out on the opportunities of globalization is the existence of huge financial outflows that are draining African economies of much duly needed financial resources that could otherwise be used to spur investment in local production, transformation and value-creating and value-adding activities. In this article, we will briefly touch upon one of the most important accounting techniques that generate illicit financial flows: abusive transfer pricing. Illicit financial flows Currently, transnational companies control about 80% of global trade through integrated value chains[1] and of this trade 60% happens WITHIN multinational groups rather than between...

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EXTRACTIVE INDUSTRIES: DRAINING MORE THAN RAW MATERIALS ALONE

For years, the curse of natural resources and of knowing how to use them for sustainable development in countries that swallow them up has consumed a great deal of ink. Several factors explaining this lack of local wealth creation must be seen in the light of many factors such as capital flight (IFF), the use of offshore financial arrangements, the poverty of international and producer governance – and also a deficiency in the creation of added value.   Illegal financial flows in the extractive industries The issue is of importance for the countries in question. According to UNECA, there...

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Diamonds: Precious stones, but for who?

 Diamonds: Precious stones, but for who? Diamonds have long been the object of envy, adorned jewelry decorations and sold at high prices to consumers. But what economic reality hides behind the glittering gloss of these small stones? What challenges face producing countries if they are to position themselves well in global value chains and so benefit from their natural wealth? To discover this, we must start with an overall analysis of the sector in order to determine where most of the financial benefits are realized. By nature, the diamond can easily be trafficked secretly giving rise to a black...

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Video: The Impacts of Large Scale Farming in Tanzania

Land grabbing has become a recurring phenomenon in Africa but the situation in Tanzania is a disaster; from the northern part of the country where about 40,000 of the Maasai tribe were said to have been evicted from their ancestral land to enable the Dubai Royal family to hunt, to the south where the SAGCOT program (Southern Agricultural Corridors of Tanzania) of G8/NEW Alliance has driven thousands of families to penury. In December 2015, the AEFJN Secretariat went on a fact-finding mission to Tanzania. Some of the journeys took as long as 17 hours but it gave the staff...

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