Showing 85 - 96 of 127 publications
January 2016

Business people’s views of paying taxes in Ethiopia

by Wollela Abehodie Yesegat & Odd-Helge Fjeldstad

This study examines factors that determine business people’s attitudes towards paying taxes in Ethiopia. Based on data obtained from a survey of business taxpayers in Addis Ababa, the study finds a statistically significant relation between tax-compliance attitude and factors such as the perception of probability of audit, corruption, satisfaction with the tax administration, peer influence,…

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November 2015

Measuring Misalignment: the Location of US Multinationals’ Economic Activity Versus the Location of their Profits

by Alex Cobham & Petr Janský

A major international effort – the OECD Base Erosion and Profit Shifting (BEPS) initiative aims to reduce the extent of misalignment between the profits of multinational groups, and the location of their real economic activity. Recent research using balance sheet data has shown major misalignments, with a number of small jurisdictions capturing a tax base…

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October 2015

A Price-Based Royalty Tax?

by Kimberly A. Clausing & Michael C. Durst

This paper considers the merits of a price-based royalty, a royalty for which the rate varies with the product price, as a fiscal instrument for taxing extractive industries. In light of the literature on natural resources taxation, the case for a price-based royalty is appealing. A price-based royalty captures some of the desirable attributes of…

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September 2015

Limitations of the BEPS Reforms: Looking Beyond Corporate Taxation for Revenue Gains

by Michael C. Durst

This paper argues that global corporate tax policies have long been dominated by a political consensus among governments of countries at all levels of economic development, to the effect that forces of tax competition render taxation of the cross-border income of multinational companies both infeasible and unwise. Current tax laws around the world, which permit…

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August 2015

What Do We Know about Mineral Resource Rent Sharing in Africa?

by Bertrand Laporte & Céline de Quatrebarbes

Governments that lack the capacity to mine resources themselves have to attract foreign direct investment. However, since resources are not renewable countries need to capture a ‘fair’ share of mineral resource rent to promote their development. While the sharp rise of the world prices of most minerals (in particular, gold, copper, iron and bauxite) multiplied…

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July 2015

Taxing the Urban Boom: Property Taxation and Land Leasing in Kigali and Addis Ababa

by Tom Goodfellow

Much contemporary economic growth in Africa is driven by urban service sectors including construction and real estate. This manifests in rapidly transforming landscapes and the proliferation of valuable property in the continent’s booming large cities, often accompanied by growing socio-economic inequality. In this context, improving systems for property taxation is an urgent and growing need…

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July 2015

Tax and the Governance Dividend

by Mick Moore

It is now widely believed that taxation contributes to the quality of governance. There are a number of variants of the broad argument. The most general proposition is that, if governments are dependent on broad general taxation for their incomes, they will, for reasons of self-interest, be more responsive to the needs of their citizens…

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June 2015

Limitations on Interest Deductions: A Suggested Perspective for Developing Countries

by Michael C. Durst

This paper evaluates the efforts of the Organisation for Economic Co-operation and Development (OECD), in its project on base erosion and profit shifting (BEPS), to control profit shifting by members of multinational groups through payments of interest on related-party loans. Currently, members of groups appear be shifting large amounts of income from countries around the…

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Unitary Taxation in the Extractive Industry Sector

by Erika Dayle Siu, Sol Picciotto, Jack Mintz & Akilagpa Sawyerr

This paper analyses whether a global unitary taxation approach to corporate income tax (CIT) can improve the ability of governments to design and administer efficient and effective tax and royalty policies for the extractive industries. Drawing upon experience with unitary approaches to corporate income taxation of the extractive sectors in subnational taxation systems of the…

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April 2015

Unitary Taxation: Tax Base and the Role of Accounting

by Prem Sikka & Richard Murphy

For more than twenty years there have been discussions on the issue of multinational corporations shifting profits from high- to low-tax jurisdictions, with resulting gains to them from the resulting reduction in their effective tax rate. Underpinning much of this debate has been an implicit assumption that, first of all, profits are a fixed and…

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March 2015

Understanding Low-Level State Capacity: Property Tax Collection in Pakistan

by Mujtaba Piracha & Mick Moore

This paper is based on a detailed analysis of how field staff in the Excise and Taxation Department of the Punjab Provincial Government collect the (very low-yielding) property tax. In general, informal practices and relationships play a major role. More specifically, field staff enjoy considerable discretion in making key decisions about property tax assessment; the…

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February 2015

The Tax Policy Outlook for Developing Countries: Reflections on International Formulary Apportionment

by Michael C. Durst

The author offers a retrospective analysis of his recently-completed extensive research on the technical feasibility of international formulary apportionment of corporate taxable income, as a replacement for the body of ‘arm’s-length’ transfer pricing rules generally in use around the world. In this retrospective analysis the author considers recent analytical work on base erosion and profit…

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