Algeria tracks tax evasion

Algerian government plans stricter measures to crack down tax evaders, as money laundering and fund embezzlement has been a big issue in the country in recent years.

•  These measures are designed to squeeze the financial sector and protect the national economy, says a member of financial committee, in paliament. 
•  The lower house of parliament approved yesterday the creation of regional departments in charge of tracking tax evasion, money laundering and money embezzlement.
• The proposal was submitted as part of the new financial law and budget to be voted in parliament by the end of the year.
• The departments will have to report on tax evasion throughout the country. They are expected to keep money movement under close surveillance either in domestic or international organizations based in Algeria.
• President Abdelaziz Bouteflika has criticized foreign companies of transferring too much of its benefits abroad. Few of these organizations which made a lot of money in Algeria reinvested it in the country, pointed out the president.
• The financial scandal known as El Khalifa, was the best illustration of money laundering. It caused about $10 billion to Algerian economy.
• However tax evasion losses amount to $50 billion per year, according to independent foreign institutions. Tax department figures counted about $7 million of tax losses in the year 2006.