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CG Darboe calls for action to combat illicit financial flows in tax administration

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By Omar Bah

Omar Bah 3 15

The Commissioner General of the Gambia Revenue Authority (GRA), Yankuba Darboe, has called for stronger collaboration among tax administrators in West Africa to combat illicit financial flows (IFFs).

IFFs in West Africa are driven by factors such as trade misinvoicing, tax evasion, weak governance, and limited financial inclusion.

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Speaking on Wednesday at the 11th International Tax Conference of the West African Union of Tax Institutes (WAUTI) in Accra, Ghana, CG Darboe emphasised the importance of regional cooperation to address the significant economic losses caused by IFFs, which are estimated to cost Africa up to $50 billion annually.

“Illicit financial flows remain a grave threat, draining billions annually from Africa. To combat this, collaboration is key,” he said.

CG Darboe added that regional partnerships, data-sharing mechanisms, and harmonised policies will strengthen the region’s ability to detect and deter profit shifting, smuggling, and tax evasion.

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“The progress made under frameworks like the African Tax Administration Forum must be accelerated, and our collective voice amplified in global tax governance discussions,” he stated.

Mr Darboe highlighted the need for capacity building in tax administration, digitalisation of systems, and knowledge sharing among countries to enhance enforcement and compliance. He also stressed that political will and international collaboration are critical to curbing these outflows and ensuring resources are redirected toward development.

Darboe’s efforts align with broader initiatives by organisations like the West African Tax Administration Forum (WATAF) and the African Union, which advocate for institutional reforms and the use of technology to improve tax systems and reduce IFFs.

“As developing economies, we face a dual challenge ranging from declining external aid and unsustainable debt levels. These constraints demand that we rethink about our traditional approaches and prioritise self-reliance.”

He said domestic revenue mobilisation is “no longer a choice-it is an imperative for financing development, reducing inequality and, securing the future of our nations.”

In today’s evolving economic landscape, CG Darboe added, “Developing economies must strengthen their revenue generation frameworks to ensure sustainable development and financial resilience”.

He added that the challenges posed by declining external assistance and increasing debt burdens require innovative, homegrown solutions to bolster domestic resource mobilisation.

“This conference provides a crucial platform for dialogue and collaboration in this regard,” he added.

CG Darboe emphasised that the taxation of the digital economy presents both challenges and opportunities, requiring robust policies to ensure fair and effective revenue collection.

“The discussions on reshaping international tax standards under the UN framework are particularly timely, as Africa seeks to establish a more inclusive and equitable global tax system.”

He urged participating countries and partners to reaffirm their collective commitment to strengthening tax systems, improving compliance, and fostering international cooperation.

“Together, we can formulate robust strategies that not only enhance our domestic revenue mobilisation efforts but also pave the way for economic resilience in the face of global uncertainties. As we look forward to solutions to enhance domestic revenue mobilisation, the digital economy offers both opportunities and complexities.”

Organised under the theme “Domestic revenue mobilisation in the wake of dwindling aid flows and increasing debts: Strategies for developing economies”, the Accra conference aims to push for more rigorous domestic mobilisation.

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