What does this hemorrhage that specialists call “illicit financial flows” consist of? But multinational corporations are also culprits of facilitating illicit financial outflows through the manipulation of trade transactions. Companies use tax evasion (which is illegal) and tax avoidance, taking advantage of legal loopholes of the international corporate taxation system. Recently, however, governments of advanced economies have scaled up efforts to combat corporate tax evasion in an era of high stress on national budgets. Indeed, the United Nations has declared that illicit financial flows are a handicap to development financing and hence a hindrance to Sustainable Development Goals.

Source: GNN Liberia October 10, 2017 19:18 UTC