Ghana is the third largest tax haven in Africa

desmond frimpong

September 4, 2017 12:19 PM

Tax haven is a country or independent area where taxes are levied at a low rate.

West African country Ghana has been is said to be the third largest tax haven in Africa, that is according to a recent report by the Financial Secrecy Index (FSI).

The Financial Secrecy Index (FSI) is the Tax Justice Network’s flagship index, in effect a ranking of tax havens.

Ghana’s rating is not too far behind Mauritius, which leads the ranking in financial secrecy with 297, meaning it is the popular most financially secretive and the most preferred destination for capital flight.

In the words of Benjamin Franklin, the only things that are certain are death and taxes. However, in Mauritius taxes are not necessarily a sure thing.

According to the report, Liberia runs second on the African continent in terms of haven with a score of 218.2.

Tax havens are a popular, legal and often secret instrument for multinational corporations to move capital across borders.

By taking advantage of loopholes in various national legislations and placing operations in countries with low taxes, companies can reduce their tax rate from around 35% to 25% to 15% or lower.

These are Africa's largest tax havens.

desmond frimpong