Government acts to uncover hidden financial transactions to curb illicit financial flows

VARIOUS strategies to uncover hidden financial transactions and enhance domestic revenue mobilisation have been set up by Government, according to the Finance and National Planning Minister, Dr Situmbeko Musokotwane.

These strategies, which are being implemented by the Zambia Revenue Authority (ZRA), are meant to curb illicit financial flows in the country.

Dr Musokotwane pointed out that some of these strategies included setting up of a functional forensic lab that would help auditors and investigators uncover hidden financial transactions and trace illicit financial flows.

He said other strategies were setting up of a dedicated investigations units that targeted countering tax evasion practices and prosecuting such offences.

Dr Musokotwane said 700 tax evasion cases were prosecuted in 2021.

He said this yesterday in Lusaka at the 10th Pan African Conference on Illicit Financial flows and taxation in a speech read by the ministry’s Permanent Secretary, Mr Trevor Kaunda.

“We have also established a transfer pricing unit which is responsible for conduction specialised audits that can detect transfer pricing practices among multinational companies,” Dr Musokotwane said.

He also also stressed that addressing the scourge of illicit financial flows required strong international cooperation and concerted efforts of stakeholders, including the private sector and civil society.

At the same function, Tax Justice Network for Africa Executive Director, Alvin Mosioma said illicit financial flows had become more complex.

Mr Mosioma said the conference was therefore taking deeper reflections of the emerging issues around tackling illicit financial flows and how they had been exacerbated by the multiple crisis

He noted that the main objective of this year’s PAC conference was to explore ways to mitigate the impact of global external shocks on the continent through tackling illicit financial flows and undertaking progressive domestic resource mobilisation.

TJNA has organised PAC every year since 2012 with an average participation per year has been 150 participants per year.