Showing 97 - 108 of 145 publications
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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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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