Paradise Papers call for serious investigations

Dear Editor, GOVERNMENT should seriously and keenly follow up the observation by Deloitte & Touche which has called for the introduction of a transfer pricing regulation to stop illegal flow of funds from Zambia.

Like correctly pointed by this audit firm, the regulation will also greatly enhance existing rules and prevent syphoning of profits out of Zambia.

I actually hear that 82 per cent of offshore accounts transactions are normal business practice while about 20 percent are for tax evaders.

And it is only through investigations that one is able tell which is which. But for the time being, all should be treated with suspicion. It is normal to feel that way.

And if it is true that our own Kabamba Kanyama assisted over 9, 000 Zambians to open up offshore accounts overseas, then that is a big starting point in my view.

As Zambians, we must establish the reason why so many Zambians would wish to take their money outside the country when it is badly needed locally.

If their prime aim was to evade paying taxes to the Zambian government then action should be taken to remedy the situation.

I personally think that time has definitely come to monitor our investors to ensure that they become more transparent in their operations, especially those to do with finances.

I understand that Zambia is one of the very few countries in Africa where investors have been allowed to freely transfer their profits to their countries of origin without any questions asked.

This free-for-all situation is certainly bad for our economy and cannot be allowed to continue.

The expose of the Paradise Papers could be just a tip of the iceberg as the rot could be much deeper than many think.

They say a stitch in time saves nine later and government should be seen to be taking an active interest in the matter to bring about financial sanity to our nation.