The Tax Justice Network Africa (TJNA) is reporting that Ghana losses about $1.4 billion each year due to illicit financial flows.

The group argues that the country is amongst a list of top countries loosing significant revenue through tax evasion, tax exemptions and inefficiencies in the country’s tax system.

Speaking to Joy News’ Blessed Sogah on the sidelines of the African Parliamentary Network on Illicit Financial Flows and Taxation Summit in Ghana, Strategic Programmes Director at the Tax Justice Network Africa, Francis Kairu pointed out that the problem can be addressed if tax laws within the country are better implemented.

"Our governments must also acknowledge that the problem is a major issue, and I think the biggest challenge in our generation now is the issue of illicit financial flow. Ghana is one of the countries that losses the most because you have natural resources, you have a huge population that is being taxed.

"You also have multinational companies in this country and you are losing over 1.4 billion dollars every year to the activities of these multinationals and illicit financial flows.

"Ghana is one of the countries that grant tax exemptions and tax holidays every other day," he said.

Meanwhile, Africa loses nearly US$89 billion dollars annually due to illicit financial flows. This was revealed in a report released by the United Nations Conference on Trade and Development.

The report also called Africa a ‘net creditor to the world’.

According to experts, the export of commodities such as gold, diamond and platinum is responsible for almost half of the total figure lost every year.

Companies are also accused of under-declaring the value of exports, cheating on payments of taxes and royalties.