The report estimates that the country could be losing between $57 million and $153 million annually.
The primary concern is the undervaluation of gold exports to the United Arab Emirates, which accounts for a substantial portion of the revenue loss. Additionally, multinational companies are employing various tactics, including transferring profits to tax havens, to minimize their tax liabilities.
To mitigate these risks, the report recommends strengthening the capacity of Senegalese tax authorities to detect and prevent tax evasion. Implementing variable royalty mechanisms for natural resources is also considered a crucial step to ensure fair revenue collection.
As Senegal prepares to benefit from the upcoming production of oil and gas resources, addressing these issues is essential to maximize the economic benefits for the nation. By taking proactive measures to combat tax evasion, Senegal can safeguard its long-term fiscal health and invest in critical development projects.
AC/Sf/fss/abj/APA