The Kano Emirate council head Shehu Muhammadu Sarkin Shanun Kano, representing the Emir of Kano, Alhaji Muhammad Sanusi, has stated that corruption is one of the major factors that fuels and encourages Tax Havens, adding that it is the bane of developing countries.

Making this statement at the international conference by organised by the Center for General Studies and the Office of International Programme, University of Ibadan on the topic Tax Havens and the Developing World: A Global Dimension, Shehu Muhammadu noted that people patronise tax havens as a means to evade and avoid tax in their home countries.

He further stated that corruption is a major reason that people keep their money in secret shell companies. He also noted that corruption which seems to be prevalent in Nigeria stems from three major problems which he identified as; lack of discipline, lack of monitoring and lack of appropriate sanction.

Sarkin Shanun Kano   expressed hope that the conference will address the burning issue of corruption. He also urged the press to publicise corrupt officials so as to stem the deadly tide in the country.

“Corruption is the biggest problem that is encouraging tax heaven.

The monarch then maintained that the war against corruption can be won just within six months if the government can instil discipline among the citizens and provide appropriate sanctions for the offenders.

Shehu, however, tasked journalists to do follow up to stories of corrupt cases after they have been reported in the media.

He said journalists can do monitoring and evaluate of corrupt cases under the Economic and Financial Crimes Commission (EFCC) as ways of taming corruption.

“There are four major problems that is aiding corruption in Nigeria. One is lack of discipline, the second one is lack of sanctions, the third is lack of monitoring and the forth is evaluation.

“Lack of discipline is paramount in this country, if we tell our people to be discipline, it is the first way to discourage corruption

“Lack of sanctions. I know the EFCC man that is here, they are working, they are fine policemen who are good in forensic analysis but if sanctions can be where they should be, I can tell you that six months we can fight corruption.

“Lack of monitoring and evaluation of corrupt cases, the press are not monitoring corrupt cases. I wish the press can keep their diaries and remind the EFCC of all the corruption cases. There is no monitoring of the cases.

“I want to suggest this to the conference and I believe this is what the conference will address”.

The Vice Chancellor of the university, Professor Idowu Olayinka who spoke through Deputy Vice Chancellor (Administration) Professor Emilolorun Ayelari maintained that tax payment is a compulsory obligation which all citizens within the reach are expected to pay.

The negative impact of Tax Havens on the economy of developing countries.

The Director General of West African Institute for Financial and Economic Management (WAIFEM), Professor Ekpo Akpan has enumerated some of the negative impact of Tax Havens on the economy of developing countries.

Prof Ekpo gave these highlights in his keynote address at the International Conference organised by the Center for General Studies and the Office of International Programme, University of Ibadan on the topic ';Tax Havens and the Developing World: A Global Dimension';.

The WAIFEM DG who was represented by Prof Douglas stated that a lot of resources, funds and assets are transferred yearly to shell companies and secret offshore accounts which enriches the economies of the Tax Havens at the expense of developing economies.

He said “Tax Justice Network reckons that an accumulated 21 to 32 trillion US Dollars has been invested in 80 offshore accounts to the detriment of developing economies.”

Noting that Tax Havens are legitimate refuge for keeping wealth, Prof Ekpo however identified the problems of tax havens which he noted encourages tax evasion and avoidance. He mentioned that Tax Havens provide low or non-existent tax rate, encourages lack of transparency, allows individuals to own shell co-operations and grants fiscal advantages to non-resident individuals.  

Prof Ekpo identified some countries that operate tax havens as; countries in the British Territories, Virgin Islands, Seychelles, Cayman Islands and Liberia in West Africa. He also noted that the effects of tax havens are both qualitative and quantitative.

According to Prof Ekpo, Tax Havens corrupt and distort developing economies, prevents double taxation, encourages stealing, fraud and corruption, serves as conduits of massive illegal financial flow from poor countries to rich countries and many more.

To address these issues, the Professor recommended that the government of developing countries should establish public registries of verified ownership on legal entities. He also proposed that policy makers should publicly disclose their revenues, profits and assets.  

Researchers should take Tax Havens as an area of research interest.

As part of the ways to tackle the menace of Tax Havens on the economies of developing countries, the Former Director of Distance Learning Centre (DLC), University of Ibadan, Professor Bayo Okunade has suggested that researchers should take Tax Havens as an area of research interest.

Prof Okunade gave this recommendation while he was delivering his keynote address at an International Conference organised by the Centre for General Studies and the Office of International Programme, University of Ibadan on the topic ';Tax Havens and the Developing World: A Global Dimension’.

The former UI DLC Boss noted that until the exposure of the Panama Papers which revealed the list of wealthy people who had secret offshore accounts, the problems of Tax Havens received little or no attention from researchers and scholars.   

Prof Okunade explained that Tax Havens are countries that legally admit individuals to keep their assets, wealth and resources with an assurance of secrecy and anonymity. He also noted that Tax Havens are jurisdictions that use secrecy as a prime tool to lure wealthy people into keeping their money with little or no tax demands.

Enumerating the injurious effects of Tax Havens on developing economies, Prof Okunade explained that the practice of having secret offshore accounts encourages tax evasion and allow people remain unaccountable to their actions.

He also noted that Tax Havens deprive poor countries the resources to fight poverty and stunt the social and political potentials of developing countries. Acccording to the Professor of Political Science “African countries have lost over 1 trillion in capital flight to Tax Havens which impoverishes the developing countries.”

Professor Okunade therefore encouraged the academic community to conduct more researches into unravelling the dangers of Tax Havens so as to tackle its effects. “Researchers should take Tax Havens as an area of research interest because have a responsibility of stopping this phenomenon,” he said.

More to come ........