Karen B. Brown (George Washington) presents Tax Incentives and Sub-Saharan Africa, 48 Pepp. L. Rev. 995 (2021), at Florida at this time as a part of its Tax Coverage Colloquium hosted by David Hasen:
The OECD’s Base Erosion Revenue Shifting (BEPS) undertaking has taken a strong and welcome have a look at most of the tax avoidance methods that proliferate in a world the place multinational enterprises are within the enterprise of exploiting gaps within the tax legal guidelines of various international locations to attenuate their final tax payments. The concentrate on worldwide consensus and prescriptions for reform has not been an unqualified good for the nations in Sub-Saharan Africa, which discover themselves within the place of reacting to requirements and taking up compliance burdens set with out ample consideration of their particular circumstances. As a result of the trail for the BEPS undertaking was chosen earlier than receiving significant enter from these nations, the initiatives supply little help for revenue-raising methods for Sub-Saharan Africa and require an administrative infrastructure presently past the capability of many countries within the area.
With an eye fixed towards integrating achievement of the United Nations Sustainable Growth Objectives (2030) (SDGs) with the BEPS undertaking, this text urges three reforms:
implementation of treaty-based regional tax incentives conscious of the SDGs within the OECD’s Multilateral Instrument to Implement Tax Treaty Associated Issues to Forestall BEPS; improvement of a fund by high-income international locations to help Sub-Saharan African nations in constructing tax administrative capability; and reconsideration of among the BEPS reform proposals, significantly the Digital Financial system two-pillar proposals, with the intention of in accordance company to Sub-Saharan Africa because it constructs a blueprint for strong emergence from financial hardship heightened by the pandemic.