Showing 73 - 84 of 127 publications
August 2016

International Tax Disputes: Between Supranational Administration and Adjudication

by Sol Picciotto

The proposals resulting from the G20/Organisation for Economic Cooperation and Development (OECD) project on Base Erosion and Profit Shifting (BEPS) include a drive for mandatory binding arbitration of international tax disputes, strongly supported by business. This issue should be considered in the context of the reasons for and nature of international tax disputes. The bulk…

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June 2016

Tax Base Erosion and Profit Shifting in Africa – Part 1: Africa’s Response to the OECD BEPS Action Plan

by Annet Wanyana Oguttu

This paper considers what Africa’s response should be to the OECD’s base erosion and profit shifting (BEPS) project. The paper acknowledges that BEPS concerns for developing countries (such as those in Africa) may not necessarily be the same as those for developed countries. The author first explains the concepts of tax avoidance and tax planning,…

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June 2016

Taxing Multinational Enterprises as Unitary Firms

by Sol Picciotto

This paper explores the issues raised for international tax rules of explicitly treating multinational enterprises (MNEs) as single or unitary firms. It first briefly explains why reform of international corporate taxation is important particularly for developing countries, then outlines the flaws in the current system. It discusses the impetus created for reforms, and the political…

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The Effect of Central Grants on Local Tax and Non-tax Revenue Mobilisation in a Conflict Setting: Evidence from Côte d’Ivoire

by Tiangboho Sanogo & Jean-François Brun

This analysis uses panel data from thirty-five departments over the period 2001-2011 to analyse the effect of grants from central government on local revenue mobilisation in Côte d’Ivoire. The study considers the two components of local own revenue in Côte d’Ivoire: tax revenue (LTR) and non-tax revenue (LNTR). To perform the investigation, the analysis is…

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March 2016

Building Support for Taxation in Developing Countries: Experimental Evidence from Mexico

by Gustavo A. Flores-Macías

In spite of the importance of taxation for political and economic development, we know relatively little about the conditions under which citizens might not exact a political cost on leaders for adopting a particular tax. Drawing on insights from the literature on institutional design, this article examines how certain features of taxes – such as…

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March 2016

A Review of Uganda’s Tax Treaties and Recommendations for Action

by Martin Hearson & Jalia Kangave

In June 2014, Uganda announced the temporary cessation of bilateral tax treaty negotiations, and a review of its policy towards such treaties. The main effect of tax treaties is to divide up the ‘rights’ to tax cross-border investment between the state parties, which reduces the possibility that businesses will incur double taxation; in doing so,…

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March 2016

A Fiscal History of Ethiopia: Taxation and Aid Dependence 1960-2010

by Giulia Mascagni

This paper reviews the fiscal history of Ethiopia, focusing particularly on the period between 1960 and 2010, for which detailed fiscal data is available to underpin the analysis. While reviewing the key fiscal and economic events of this period, particular attention is paid to the relation between Ethiopia and its donors, which in fiscal terms…

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March 2016

The Corporate Tax Burden in Ethiopia: Evidence from Anonymised Tax Returns

by Giulia Mascagni & Andualem Mengistu

This paper computes and analyses the tax burden on Ethiopian corporations, measured by the average effective tax rate (ETR) on their profit. Our strongest result regards the relation between tax burdens and firm size. We find a statistically significant U-shaped relation between ETR and size. While small firms face the highest tax burden, the largest…

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February 2016

From the Lab to the Field: a Review of Tax Experiments

by Giulia Mascagni

Tax experiments have been gaining momentum in recent years, although this literature dates back several decades. With new developments in methods and data availability, tax experiments have gradually moved away from lab settings and towards the field. This movement from the lab to the field has happened against the background of the ‘credibility revolution’ in…

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January 2016

Boosting Revenue Collection through Taxing High Net Worth Individuals: The Case of Uganda

by Jalia Kangave, Susan Nakato, Ronald Waiswa & Patrick Lumala Zzimbe

For over a decade Uganda’s tax-to-GDP ratio hovered between 12 per cent and 13 per cent, despite various amendments to tax laws and reforms in tax administration. Part of the low revenue contribution can be attributed to factors external to the Uganda Revenue Authority (URA), such as the structure of the economy – particularly the…

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January 2016

Developing Country Revenue Mobilisation: A Proposal to Modify the ‘Transactional Net Margin’ Transfer Pricing Method

by Michael C. Durst

Developing countries tend to rely more heavily than wealthier countries on corporate tax revenue from multinational companies operating in their jurisdiction. Therefore, the practice that the Organisation for Economic Cooperation and Development (OECD) has labelled ‘base erosion and profit shifting’ (BEPS) – the diversion of taxable income by multinational groups from countries where they conduct…

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