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.