21-Nov-18, Pymnts
Analysts estimate the South African government has lost a total of about USD37 billion as a result of misinvoicing in its global trade operations.
%20Pymnts.jpg "South Africa government losing millions to trade mis invoicing (c) Pymnts")
Image: Pymnts
Think tank Global Financial Integrity calculated the South African government lost about USD7.4 billion every year between 2010 and 2014. The losses can be traced back to the practice of misinvoicing, in which companies looking to move money across borders illicitly misrepresent the value of trade on an invoice.
A company may overstate the value of goods they import, to move funds overseas or avoid taxes. Companies may also understate the value of cross-border invoices, or over-invoice to claim rebates.