ActionAid Ghana, a social advocacy non-governmental organization operating in the country, has formed a coalition on tax justice for the Northern Region to advocate and campaign against injustices in revenue collection and illicit financial flows.

The coalition, which comprised civil society organizations, non-governmental organizations and the media, would work collectively to monitor the activities of corporate organizations that default in tax payment, tax invasions, illicit financial practices that deny the state of revenue.

Madam Queronica Quartey, ActionAid Ghana Policy and Campaigns Manager who inaugurated the coalition in Tamale on Tuesday, said the coalition’s work had become necessary because of tax dodging by some multi-national companies.

The coalition was formed after a two-day sensitization workshop on tax justice to deepen the understanding of participants on tax justice and illicit financial inflows.

Other terms of reference was for the coalition to create more awareness about tax injustices in the region and advocate for policy reforms jointly with similar coalitions in the country for the benefit of the nation.

Mad Quartey said the regional coalition would be supported financially and logistically to carry out its activities and explained that people must form movements with actors who share similar convictions.

She stated that there was a tight link between democracy, accountability and good governance and that tax justice would complement government in its quest to fulfill various developmental activities.

Mr Emmanuel Budu-Addo, Head of Finance at ActionAid Ghana, urged the government to monitor and capture all multi-national companies operating in the country onto the tax net to increase revenue for infrastructure development.

He said Ghana losses not less than GH?1.2 million annually through tax evasion and that it was important to be vigilant in tax collection.

Mr Budu-Addo said there were so many loopholes with weak legal and policy systems which enabled some companies to flout the rules with impunity, adding that the country would not have been plunged into financial difficulties if there were proper management and ways of capturing everybody on the tax net.

He said Ghana had been recording deficit with foreign direct investments despite generous incentives and that corporate taxes were fast reducing, but that of individual taxes had been increasing dramatically and advised the government to put pragmatic measures in place to reverse the trend.

“Between 2008 and 2013, tax revenue loss from trade was about 49.73 percent equivalent to $234 million…revenue lost for only two companies’ takeovers was $67 million in the oil industry," he said.