Please ensure Javascript is enabled for purposes of website accessibility
September 25, 2023

Is Deloitte Ripping Off Poor Countries in Africa With This “Tax Strategy”?

There is a single guy going off about this Observer piece on Deloitte's Facebook page, and that's between all the randos cussing the D out for unleashing janky software on certain states' unemployed. It's not a good time for Deloitte, that's for sure:

A global consultancy giant has been accused of advising big business, including UK firms, on how to avoid paying tax in some of Africa's poorest countries.

ActionAid has obtained documentation showing that Deloitte, which employs more than 200,000 people in over 150 countries, has been advising foreign companies on how, by structuring their investments through the tropical island of Mauritius, they can enjoy significant tax advantages.

The charity claims that the strategy could help companies to avoid paying hundreds of millions of dollars in tax. Deloitte insists the strategy is not about tax avoidance and attracts much-needed investment to the countries involved.

According to troll and critic Stephen Barna, Deloitte is "ripping off the poorest people living on the planet." However, according to ActionAid tax policy adviser Toby Quantrill, “This document helps lift the lid on the tax avoidance techniques that are being used to deprive poor countries of hundreds of millions of dollars in tax. These techniques may be legal, but that does not mean they are moral. Tax revenues are desperately needed to meet peoples most basic needs and to move countries away from aid dependency. Big businesses have an important role to play in economic development in poor countries. But they also have to act in a socially responsible way. Deloitte is failing Africa for as long as it continues to advise on tax avoidance strategies in the way they have been doing.”

Deloitte — naturally — adamantly denies it is ripping anyone off. I mean all they are trying to do is save their clients a few bucks, legally, what's so wrong with that?

The documentation in question is included below.

Investing in Africa through Mauritius

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

Deloitte University Is Getting Bigger Because God Forbid KPMG Have the Superior Brainwashing Compound

Dallas Morning News reported yesterday that groundbreaking on a “massive expansion” of the already massive Deloitte University campus in Westlake, Texas will begin in January. Deloitte’s been wanting to expand for a while but was waiting on Tarrant County commissioners to approve more than $5 million in tax breaks. “We certainly appreciate the great corporate […]

illustration of a chair with a box of someone's stuff and a "dismissed" sign

Layoff Watch ’23: Deloitte UK Cuts More Than 800 People Because Business is Slow and People Aren’t Quitting

Reported earlier today by Financial News, Deloitte UK is cutting approximately 3 percent of its workforce or more than 800 people. The cuts are concentrated in consulting, financial advisory, and risk advisory though a few audit and business services folks also got the axe. FN cites slowing demand in the second half of the year […]