Digital Economy & Taxation: Challenges and Opportunities In Nigeria
This article highlights Nigeria's potential to diversify its economy and drive innovation through its expanding youth population and digital ecosystem. To capitalize on these opportunities, the country needs to implement a swift and adaptive taxation strategy. Addressing the challenges of taxing the digital economy, Nigeria is exploring innovative solutions, including revising international tax rules and adopting digital-first policies. This proactive approach positions the nation to shape its economic future in the digital era.
Corporate Inversions and the Global Ultimate Owner: Challenges in International Business Research
This study examines corporate inversions, where multinational enterprises relocate their global ultimate owner (GUO) to another jurisdiction, complicating the identification of MNEs' country of origin and foreign subsidiaries. Using data from over 52,000 MNEs across 30 nations, the study hypothesizes that emerging market MNEs (EMNEs) and larger MNEs with extensive foreign networks are more likely to invert. The findings confirm this, highlighting differences between inverted and non-inverted MNEs, which can lead to sampling biases in research. The study suggests methodological adjustments to improve the accuracy of cross-country MNE analyses.
How Kamala Harris's Tax Hike Could Affect Business Growth
This article analyzes the potential negative effects of raising corporate tax rates, focusing on Kamala Harris's proposal to increase the U.S. corporate tax rate from 21% to 28%. It draws on examples from the Trump administration's tax cuts and international case studies from Ireland, Germany, and the UK. The article highlights the risks to business investment, job creation, and economic growth, noting that while higher taxes can increase public revenue, they may also discourage investment, reduce competitiveness, and hinder long-term growth. The analysis underscores the need for policymakers to balance revenue generation with maintaining a healthy business environment.
The EU's Uncoordinated Approach to Tax Avoidance and Tax Abuse in Relation to 'Uncooperative' Tax Jurisdictions
This article examines the European Union's (EU) external tax policies regarding 'uncooperative' tax jurisdictions, focusing on the role of the Court of Justice of the European Union (CJEU) case law, domestic tax laws of Member States, and the EU's blacklist of non-cooperative jurisdictions. By contextualizing the EU blacklist with relevant CJEU case law on anti-avoidance and anti-abuse provisions, the article highlights three key conclusions: the blacklist's soft law nature allows Member States to exploit anti-avoidance provisions; its failure to meet objectives is due to EU political dynamics; and it addresses symptoms rather than fundamental flaws in the international tax system.
Reimagining Tax Treaty Dispute Resolution; beyond MAP and Arbitration
This article addresses disputes between contracting states over the interpretation of terms in bilateral tax treaties, which can lead to conflicts over sovereignty and decision-making authority. Dr. Dhruv Janssen-Sanghavi reviews existing dispute resolution mechanisms and proposes a new approach that incorporates a greater role for the judiciary in resolving these conflicts.
Cross-Border Taxation in a World of Abundant Capital
The tax rules for foreign investors in the U.S. provide highly favorable treatment, with most foreign investors paying no U.S. tax on passive investments. These rules are based on the outdated assumption that the U.S. needs foreign capital to bridge the gap between domestic savings and investment. However, global financial capital is abundant due to regressive policies abroad, leading to excess foreign savings that have fueled unproductive consumption in the U.S., contributing to financial instability and a growing trade deficit. The article advocates for reforming U.S. inbound tax rules by increasing taxes on foreign investment to address these issues.
Tokenization: Unlocking Developing Countries Wealth
This article highlights the significant growth of the black or shadow economy, especially in developing and least developed countries (LDCs), as identified by surveys from organizations like the World Bank, IMF, and ADB. Illicit financial flows, as noted by sources such as the Financial Secrecy Index and Tax Justice Network, have severely impacted government tax revenue. In response, governments are exploring innovative solutions, including cryptocurrencies, blockchain, artificial intelligence, and e-commerce, to address these challenges. The article also introduces the FDI return index to assess the economic performance of select developing and LDC countries. Foreign direct investment (FDI) is emphasized as a vital driver of macroeconomic development, fostering prosperity, sustainable growth, employment, and infrastructure improvements in these nations. By attracting FDI, countries can access external resources and expertise, bolstering their industries and global competitiveness.
Why the U.N. Must Put AI and Data on the Tax Agenda
This article argues that the United Nations ad hoc committee on international tax cooperation should focus on the structural aspects of artificial intelligence (AI) to create a more inclusive, equitable, and effective global tax system. The complexities of the AI-driven economy, such as issues related to data, intellectual property, and the fragmentation of the AI value chain, must be addressed in their work.
International Tax Scholarship and International Tax Activism
This article explores whether tax scholarship can be separated from tax activism by identifying the technical and political elements of international tax policy. It examines the appropriate roles of legal scholarship, economics, political science, and political philosophy in shaping the international tax debate.
Climate Policies and External Adjustment
This paper examines the economic impact of climate policies on different regions and countries, focusing on external adjustments. It finds that climate policies, such as a globally coordinated carbon tax, would decrease current account balances in greener advanced economies while increasing them in fossil-fuel-dependent regions due to reduced investment in the latter. Green supply-side policies, like subsidies and infrastructure investments, would boost investment and saving but have less effect on the external sector. Country-specific factors, like carbon intensity and fossil fuel exports, shape current account responses. A coordinated global climate policy would shift capital to advanced economies, with global interest rates initially rising but decreasing over time as carbon taxes increase. These effects depend on international policy coordination and credibility.
A New Governance Framework in Cross-Border Tax Policymaking
This paper explores the power dynamics between developed and developing countries in shaping international tax policy. It proposes the creation of a World Tax Authority (WTA) or transferring authority to a more politically balanced body, such as the WTO or World Bank, to resolve global tax conflicts. Additionally, it suggests the establishment of a World Tax Court (WTC), with judges representing both high- and low-income countries, to issue binding or declaratory rulings to ensure consistent interpretation of tax treaties worldwide.