The Canadian Press - ONLINE EDITION

Graft watchdog says Philippine outflows, inflows of illicit money hit $410.5 bln since 1960

  • Print

MANILA, Philippines - An anti-graft watchdog said Tuesday the Philippine government was cheated of $3.85 billion in tax revenues in 2011, part of massive illicit money flows that totalled more than $400 billion in the past five decades.

Global Financial Integrity said in a report that illicit financial outflows including proceeds from crime, corruption and tax evasion totalled $132.9 billion in a 52 year period from 1960.

Another $277.6 billion illegally entered the country, predominantly through false invoicing of imports to evade tariffs.

It said the government has lost at least $23 billion in revenue from customs evasion since 1990 and lost an average of $1.46 billion in tax revenue each year since 2000.

The report estimated that the underground economy was equal to nearly 30 per cent of gross domestic product in 2011.

The watchdog's chief economist Dev Kar, who co-authored the report with economist Brian LeBlanc, said illicit outflows have grown from an average of 2 per cent of GDP in 1970s and 1980s to 5 per cent of GDP since 2000.

"Illicit outflows drain billions of dollars from the official Philippine economy, money that could otherwise be used to help the nation's economy grow," said GFI Managing Director Tom Cardamone, an international financial crime expert.

"At the same time, the illicit inflow of capital and merchandise is perhaps even more insidious: it fuels crime, grows the underground economy, and costs the government billions of dollars each year in lost customs duties."

LeBlanc said the $3.85 billion of lost tax revenue in 2011 was more than twice the size of the fiscal deficit and equal to 95 per cent of the total government expenditure on social benefits that year."

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Chief justices breakdown cameras in courtroom project

View more like this

Photo Store Gallery

  • JOE BRYKSA/WINNIPEG FREE PRESS Local- A large osprey lands in it's nest in a hydro pole on Hyw 59  near the Hillside Beach turnoff turn off. Osprey a large narrow winged hawk which can have a wingspan of over 54 inches are making a incredible recovery since pesticide use of the 1950's and  1960's- For the last two decades these fish hawks have been reappearing in the Lake Winnipeg area- Aug 03, 2005
  • PHIL.HOSSACK@FREEPRESS.MB.CA 100527-Winnipeg Free Press THe Provencher Foot Bridge is lit up

View More Gallery Photos

Poll

What are you most looking forward to this Easter weekend?

View Results

View Related Story

Ads by Google