Financial Crime World

Namibia Cracks Down on Tax Evasion with New Detection Methods

Windhoek, Namibia - A Step towards Combating Illicit Financial Flows

The fight against tax evasion has taken a significant step forward in Namibia with the introduction of new methods to detect and measure illicit financial flows. A national workshop held recently at Arebbush Travel Lodge brought together key agencies to refine unofficial estimates of trade misinvoicing and aggressive tax avoidance by multinational enterprises.

UNCTAD Project: Developing Statistical Frameworks for Tax and Commercial Illicit Financial Flows

The workshop was part of a United Nations Conference on Trade and Development (UNCTAD) project aimed at developing statistical frameworks to measure tax and commercial illicit financial flows in Ghana, Namibia, and Zambia. The project has been refined based on countries’ feedback and aims to enable more targeted policy action.

New Detection Methods

Namibia is focusing on two methods:

  • Partner Country Method Plus: a method used to detect trade misinvoicing
  • Price Filter Method Plus: another method used to detect trade misinvoicing
  • Exploring other methods to measure aggressive tax avoidance by multinational enterprises

The country’s Technical Working Group, comprising national agencies responsible for compiling statistics on illicit financial flows, participated in the workshop.

Finalizing Unofficial Estimates and Submitting Official Results

The meeting aimed to finalize unofficial estimates calculated in 2022 and submit official results to the Global SDG Indicator Database for indicator 16.4.1. The workshop also discussed the linkages between measurement and policy formulation, highlighting the importance of accurate data in shaping effective policies to combat tax evasion.

Conclusion

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Namibia’s efforts to crack down on tax evasion are a significant step towards combating illicit financial flows. With new detection methods and refined statistical frameworks, the country is well-equipped to take targeted action against tax evasion and ensure that its economy remains transparent and accountable.