Papers & Reports

In this symposium paper, the UF Tax Incubator working group examines some of the problems with the U.S. transfer pricing rules and suggests incremental legislative changes to improve the functioning of those rules.

Generative artificial intelligence (gen AI) holds immense potential to boost productivity growth and advance public service delivery, but it also raises profound concerns about massive labor disruptions and rising inequality. This note discusses how fiscal policies can be employed to steer the technology and its deployment in ways that serve humanity best while cushioning the negative labor market and distributional effects to broaden the gains. Given the vast uncertainty about the nature, impact, and speed of developments in gen AI, governments should take an agile approach that prepares them for both business as usual and highly disruptive scenarios.

This document sets out the fourth set of Administrative Guidance released by the Inclusive Framework. It includes guidance on application of the recapture rule applicable to deferred tax liabilities (DTL), including how to aggregate DTL categories and methodologies for determining whether a DTL reversed within five years. This guidance also clarifies how to determine deferred tax assets and liabilities for GloBE purposes when the rules result in divergences between GloBE and accounting carrying value of assets and liabilities. It also includes further guidance on cross-border allocation of current and deferred taxes, allocation of profits and taxes in certain structures involving Flow-through Entities, and the treatment of securitisation vehicles.

This document provides guidance clarifying and simplifying the application of the global minimum tax and an overview of the streamlined process for recognising qualified status for the legislation of jurisdictions implementing the Global Anti-Base Erosion (GloBE) Rules.

This paper attempts to estimate the tax revenues to be gained by the Member States of ATAF, WATAF, AU and the South Centre under the Amount A and an alternative stylized DST taxation regime. Our research demonstrates that the comparative revenue effects of the Amount A and DST taxation regimes largely depend on (a) the mix of relevant domestic economic activities at market jurisdictions (i.e., revenues sourced to the country as a market jurisdiction under Amount A and the level of revenues from automated digital services generated in the country), (b) design details of the DST regime such as the DST tax rate and the nature of activities to be taxed and (c) the relief from double taxation, if any, countries will grant to domestic and foreign taxpayers under DST.

In adopting resolution 78/230, “Promotion of inclusive and effective international tax cooperation at the United Nations,” the General Assembly emphasized that developing a United Nations framework convention on international tax cooperation is needed in order to strengthen international tax cooperation and make it fully inclusive and more effective. Therefore, the General Assembly established a Member State-led, open-ended ad hoc intergovernmental committee for the purpose of drafting terms of reference for a United Nations framework convention on international tax cooperation. The ad hoc intergovernmental committee recommends for consideration by the General Assembly these draft terms of reference.

The OECD provided an updated FAQ document regarding the international compliance assurance program (ICAP) to provide clarifications about the voluntary initiative, which aims to encourage multilateral discussions among large MNEs and tax authorities and to enhance tax certainty.

Following the European Commission’s initial CBAM proposal in July 2021, Sandbag and E3G released the report A Storm in a Teacup: Impacts and Geopolitical Risks of the European Carbon Border Adjustment Mechanism. This report takes stock of the legislative situation and evaluates the impact of the CBAM on the EU’s main trade partners from a revenue-cost perspective, based on new rules and updated data, with a particular focus on China.

This report sets out the advances being made in implementing the vision for co-operation amongst tax administrations with a specific focus on the Global Minimum Tax. It also sets out areas of tax co-operation beyond the corporate tax system looking at recent developments in the exchange of information between tax administration as well as other transparency initiatives with respect to taxation of individuals. Finally, it addresses the implications of these developments in the international tax system for developing countries with respect to both direct and indirect taxes as well as the digitalisation of tax administration.

Drawing on existing human rights instruments and literature, this chapter locates and develops an international cooperation model as a useful vehicle for the realization of socioeconomic rights in Africa by using Nigeria as a case study. Through the lens of Third World Approaches to International Law, the chapter engages with the structural and economic imbalances between developed states and developing states, making most African states unable to effectively deploy taxation to realize socioeconomic rights. The authors discuss the limits of the duty to cooperate. It argues that the duty requires developed states to provide economic and technical support, avoid being tax havens, and ensure that their multinational corporations operating in Africa are not only tax law-compliant but also complying with human rights obligations.

Philip Oamen & Adebolarin Adekanle, Taxation and the Realisation of Socioeconomic Rights in Africa: What Is the Role of International Cooperation?, (Eghosa Ekhator et al.)(forthcoming 2024).