Deloitte Helps Tax Avoiders
JOHANNESBURG – Deloittes is under fire for allegedly helping large businesses avoid their taxes in Africa.
In a report issued over the weekend the international charity group Action Aid accused the accounting firm Deloitte of helping multinational businesses to avoid tax obligations when investing in Africa by routing the funds and activities through entities registered in Mauritius.
According to ActionAid, earlier this year Deloitte released a document entitled Investing in Africa Through Mauritius, which, as an example, showed how businesses operating in Africa may reduce their capital gains tax and withholding tax obligations by 100 percent and by 60 percent respectively.
The charity group conceded that the structures outlined by Deloittes are perfectly legal, but suggested that they may not be moral, and claimed that the structures deprive much needed tax revenues from developing countries.
Deloittes has already responded to the allegations, with a spokesperson saying that the described structures are made possible because of the tax treaties signed between countries in the region, and removing these treaties could reduce the amount of international investment and business in the region.
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