A recent study has revealed that South Africa (SA) is losing roughly R1 billion ($52 million) in government revenue each year due to transfer mispricing by multinational companies, underscoring the importance of using detailed tax data to guide policy.
Traditional tools such as household surveys and broad economic statistics often fail to capture these complex revenue losses, leaving governments with only a partial picture.
Increasingly, researchers and policymakers are turning to administrative tax data accessed through secure research environments, or “data labs”, which allow anonymised records to be analysed safely. These labs provide insights that help governments design better fiscal policies and target enforcement efforts more effectively.
Amina Ebrahim, Research Fellow at the United Nations University World Institute for Development Economics Research (UNU-WIDER), explained the value of the data:
“The study shows that SA is losing around $52 million to transfer mispricing. This kind of detailed evidence allows revenue authorities and treasuries to focus on the areas where losses are most significant, instead of relying on broad, blunt measures,” she said.
The findings illustrate how better use of administrative tax data could strengthen domestic revenue mobilisation, improve fiscal fairness, and support economic policy that benefits businesses, workers, and taxpayers alike.
–ChannelAfrica–
