In May, President Magufuli of Tanzania appointed two special committees to investigate the contents of 277 containers stuck at Dar-es-Salaam. The committees' belief that they have uncovered a case of massive misinvoicing (i.e., misrepresentation of the value or quantity of exports) does not seem plausible for five reasons. For starters, the scale of mineral smuggling required for it to be true is implausible.
CGD Policy Blogs
Misunderstandings about the scale of multinational tax avoidance are common. The origin story for an erroneous $1 trillion figure is a case of bad lip reading, but its proliferation reflects the belief that there are absolutely huge sums of money for development at stake from cracking down on multinational tax avoidance. The figure itself may be ridiculous but these myths are serious—they undermine both trust in revenue authorities and businesses, overheat disputes, and make it harder to judge practical progress on improving tax systems and compliance.