17. The lost 550 billion dollars
“I have learned totally new things about transfer pricing of international companies. I can supervise and prevent it better than before,” says Mahnem Jeremia who works as an inspector in the transfer pricing unit of the Namibian tax administration.
It is estimated that almost 550 billion dollars (520 billion euros) in illicit, non-taxed money flows are transferred from developing countries each year. Invoicing of foreign trade and misuse of transfer pricing by multinational companies account for more than 70 per cent of these amounts. The Finnish Tax Administration has provided Namibian tax authorities with training in corporate taxation and in making tax collection more efficient. Most of the companies operating in Namibia are international. Development cooperation focusing on taxation brings economic benefits. The OECD estimates that one euro spent on the training of a tax inspector will pay for itself many times over as tax revenue increases.
Photo: Sami Koskinen, graphics: Juho Hiilivirta