Ghana not more catholic than the pope- Minister justifies Agyapa safe haven decision
Finance Minister, Ken Ofori-Atta, has justified government’s setting up a company in a tax haven, explaining there is nothing immoral or unethical about the decision.
He pointed out that even countries with strict rules on financial secrecy have companies in Jersey, an island nation that attracts investors by assuring them zero corporate tax.
The Minority in Parliament are the chief critics against registering the Agyapa Royalties Ltd in Jersey.
They say it is dis-incentivising for the government to want to evade tax yet demand companies, particularly multinationals, to honour their corporate tax obligations.
Former Finance Minister, Seth Terkper, called the move “a bad signal.”
But in an interview on JoyNews’ Newsfile Saturday, monitored by theghanareport.com, the Finance Minister expressed bemusement.
“You ask yourself, what is it that we are being so much more Catholic than the Pope?”
He mentioned the Norwegian government which has more than $1trillion sovereign wealth fund, the biggest in the world,incorporated in a tax haven.
The Scandinavian country set up the Norges Bank Investment Management which operates the oil fund which is invested in foreign stocks, bonds and real estates to share the windfall with future generations.
Ken Ofori-Atta explained tax havens help investor to “feel comfortable.” He indicated that by listing Agyapa Royalties Ltd on the London Stock Exchange and the Ghana Stock Exchange, the books of the company are open to the boursers.
“In terms of transparency and ability to see what they are doing, that is not something that we worry about,” he said.
To critics of the decision, the minister asked ‘what’s wrong with Jersey?”
The publications of what became known as the Panama Papers in April 2016 revealed details of corporate and individual tax evasions and triggered a global backlash against tax havens.
Norway’s oil fund was not listed among dubious evasions and tax avoidance.
Havens are seen by some as encouraging illicit financial flows especially from developing countries estimated to be between $620 to $970 billion in 2014.
The European Union releases a tax haven blacklist first published in 2015 and continuously updates it, calling out specific countries in order to improve global tax governance and fight tax fraud.