Nigeria loses huge money through falsification of trade records ― ICPC Chairman
THE Chairman, Independent Corrupt Practices and Other Related Offences Commission (ICPC), Professor Bolaji Owasanoye has disclosed that Nigeria is losing money from commercial transactions, especially from tax evasions, which is moved out from the falsification of trade records.
According to him: “When companies falsify records, it is against the law. If it is a manufacturing firm located here in Abuja, all the environmental effect is here but you have moved the money.”
Speaking on Channels TV programme, the ICPC chairman said a lot of money goes out of the country through commercial transactions that appear legal on the surface.
He explained that the whole issue about illicit financial flow is about money leaving the economy, which the country struggles for capital that would have been retained there.
“The main issue around illicit financial flow is about money that we need in our country going out illegally. It is not about money coming in. There is a huge debate between developed and developing countries, developing countries are those who lose capital.
“The biggest of it is tax evasion and profit shifting. When companies do business and they create problems, let us say environmental challenges like they release effluent and others when they falsify their records and say that they have earned less money, they pay less tax because the corporate tax is about 30 percent.
“So, if the turnover of Channels for this year is N1billion and you people say it is N500 million, you will pay a tax of N500 million and then you have moved N500million out either by over-invoicing or by other means.” He added.