Annan urges G8 nations to tackle secret companies

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 FORMER United Nations Secretary General and Chairman of the Africa Progress Panel, Mr. Kofi Annan, has called on the G8 governments to tackle tax avoidance and anonymous company ownership because of their negative impact on development.

According to him, secret companies are a key means by which corrupt leaders and irresponsible businesses hide the proceeds of their crimes and misdemeanours. Anan urged the G8 to crack down on the use of secret companies by putting in place public registries of who own and control companies and trusts.

"In this time of change, the G8 can make a difference. For example, company ownership – as well as revenue flows – can and must be made completely transparent thereby shining a light on a widespread method for hiding corruption. The G8 must establish registries on ownership of companies and trusts in all tax jurisdictions – and the registries need to be publicly available. Closely linked, tax avoidance and evasion are global issues that affect us all. The impact for G8 governments is a loss of revenue. But in Africa, it has direct impact on the lives of mothers and children."

According to the former UN scribe, "Throughout the world, millions of citizens now need the G8 leaders to take action on tax avoidance, not just because of the palpable injustice of enormous tax avoidance by major multinationals, including many headquartered in G8 countries, but also because to do so could save many, many lives around the world. Tax authorities in all regions struggle to prevent the erosion of their tax bases, but Africa struggles more than most. A G8 deal on the automatic exchange of tax information must include African authorities, giving them full access to relevant tax information."

Annan noted that the demands may seem ambitious, but it is critical. "It is not just governments who are moving ahead, but several companies too. Given this enormous momentum towards a fairer world, where unethical tax avoidance and corrupt deals become harder to hide, the leaders of G8 can be on the right side of history, swimming ahead of the tide to make the world a safer, fairer place," he said.



The Guardian