On July 1, 2021, the Organization for Economic Cooperation and Development (OECD) secured the votes of 130 members out of 139 members of the Inclusive Framework, on a two-pillar plan to reform the global tax rules. Notably, two African countries—Kenya and Nigeria—, active members of the Inclusive Framework withheld their support for this plan, which has been described by many as “historic”. Nigeria is a major economic force in West Africa and the largest economy, by GDP, on the African continent. Kenya is East Africa’s gateway and the region’s largest economy. What must have influenced their decisions not to support a historic global tax reform, and what are the consequences of such action?
It is imperative that a strategy and approach be undertaken to address MNE business models and challenges regarding taxing the digitalized economy, and that legislative measures are enacted to preserve or expand Africa’s tax base. Overall, the potential gains from Digital Sales Tax are significant, as inclusion of digital services tax, may subsequently increase revenue that may be utilised for developing States, particularly at a time of high State expenditure to alleviate the economic and social impact of Covid-19. You could include some benefits from countries that have imposed unilateral taxation legislation highlighted above to showcase the potential gains.
As the author explains in the foreword, this book intends to explore the principles, policies and practice in international investment law across the world and to foster greater study interests of students in the field. Unlike other textbooks that focus solely on investment protection in international law, this book brings an under-explored perspective from developing countries, in particular from Nigeria.
The book (International Investment Law: National, Regional and Global Perspectives) examines the principles and practices of international investment law in the light of international law. The book is situated within the prevailing dynamics of international investment law and policy that are underpinned by competing interests of the host States and foreign investors.
Despite the increasing popularity of MSIs, it is clear that self-regulation through this governance model is not the answer to driving corporate accountability for matters of public concern such as human rights protection. In a report released in July 2020 by MSI Integrity, a non-profit originally dedicated to understanding the human rights impact and value of MSIs, it was found that MSIs are not effective tools for holding corporations accountable for abuses, protecting rights holders against human rights violations, or providing survivors and victims’ with access to remedy. The report showed that we need to rethink the role of MSIs and the presence of an MSI in an industry should not be a substitute for public regulation.
Most of DSTs significant propositions are based on several grounds, including the goal of having businesses and corporations, especially multinational corporations (MNCs) pay their due share on taxes, taxing profits derived from consumers activities in their territory, or adapting traditional regulations and systems of international taxation to guide and inform new forms of unsettling business models that can be conducted virtually. This is following the debate that digital firms are undertaxed.
The primary objective of this post is to highlight the importance and gravity of the existing tax evasion in Latin America and the Caribbean today. A study conducted by Santiago Diaz de Sarralde Miguez reports that Latin America and the Caribbean are characterized by a relatively low tax burden, which averages 22.8% of GDP. That is 11.5% less than the OECD (2015). While it is true that there are large differences between countries, as the tax burden varies from 12.4% in Guatemala to 38.6% in Cuba.
Global value chains (GVCs), as a dominant form of capitalism today, have been a vehicle for entrenching the concentration of economic resources and power in the hands of multinational corporations. While COVID-19 compounded health and economic crisis, reports emerged that suppliers in the garment industry value chains have been facing mounting challenges as a result of unreasonable demands from big clients, mainly corporations in the United States and the United Kingdom.
The COVID-19 pandemic has exposed the weaknesses of the current patterns of production and consumption, exemplified by GVCs and the global trade and investment order in which they operate. These fragilities have resulted in the aforementioned social, economic and financial crises but what they represent most of all, is a crisis of responsibility in which powerful actors, state and private, that have been the main beneficiaries of GVCs, have failed to discharge their ethical and normative obligations to those most vulnerable within their production and supply chains. To this end, a new approach is sorely needed to address the vulnerabilities of a global economy built on fragile GVC governance that serves as new nodes of global inequality and precarity.
The quest for Africa’s decolonization is existential and must therefore go beyond platitudes and rhetoric. The exhortation by Sabelo J. Ndlovu-Gatsheni on the risk of decolonization losing its “revolutionary potential” is germane: decolonization “comes from within, as a revolutionary concept that speaks about rehumanization—which is a fundamental planetary project”.