Corruption and Tax Evasion Losses to the Philippines

in Business Risk

In 2011, the Philippines Government lost an estimated $3.85 Billion in tax revenue due to illicit financial flows. When the total losses from illegal financial transactions is calculated from 1960 to 2012, over $400 Billion was lost to the Philippines Government, according to a report by Global Financial Integrity.

During the 52 year period, the country lost $132,9 Billion due to various crimes, government corruption and tax evasion activities.

An additional $277.6 Billion illegally entered the Philippines. Most of the illicit funds entered the country though false invoicing of imports that allowed traders to avoid tariffs.

Since the year 2000, the government has lost an average of $1.46 Billion in tax revenue to illicit financial flows.

(More examples of money laundering activities.)

Source:  Associated Press, “Watchdog Shows Illicit Money Flows in Philippines,” ABC News, February 4, 2014.

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