A recent SA-TIED (Southern Africa – Towards Inclusive Economic Development) research study estimates that South Africa loses about R7 billion a year due to profit shifting by multinational corporations; amounting to about 4% of total current corporate income tax receipts. The key finding suggests that 98% of the tax loss is associated with profit-shifting by the biggest 10% of multinational corporations. Head of the now-terminated Davis Tax Committee, Judge Dennis Davis, believes further investigation is required into base erosion and profit shifting, which is estimated to be robbing the fiscus of at least R7bn annually.

Guest: Judge Dennis Davis - Head of the now-terminated Davis Tax Committee