Taxation

Global Digital Taxation in the Era of Covid-19: An African Perspective

African countries would also need to ensure that the nexus-revenue threshold is as low as possible, in order to accommodate jurisdictions with a relatively small market. Other important issues that are still outstanding include i) the definition between routine and residual profits, ii) the required threshold for determining the portion of residual profits allocable, and iii) how the profits would be allocated to market jurisdictions

Post-pandemic Opportunities for Strengthening The Fiscal Social Contract In Nigeria

The quality of public service delivery has been shown to affect tax non-compliance in an important way. Among other issues that have been attributed to low tax revenues in Nigeria, the State of the fiscal social contract can be said to be the single most important underlying cause. While there remains a depth of systemic issues to be resolved in order to rebuild the broken links in the fiscal social contract properly, the predicted post-pandemic impact on digital communication and business provides Nigeria with the opportunity to leverage on digital growth and engagement to bargain a stronger social contract, particularly with its largest demographic.

Digitalization of Nigerian Businesses: Tax Challenges Post COVID-19

The effect of COVID-19 on the developing countries and the imposition of tax on the digital economy within the context of the OECD/G-20's Negotiations on enacting appropriate global standards would include new dynamics of participation, new revenue needs, and new policy dilemmas—involving developing countries. There is the need to fully digitalize the tax filling system in Nigeria and completely jettison the mundane practice of manual tax fillings at the office of the tax authority.

Fiscal Social Contract and Taxation in a Post COVID-19 Pandemic Africa

For the fiscal contract to be effective post-COVID-19, all parties to the contract must actively seek to engage on fairer terms. The terms must be implemented, in good faith and, with consideration to the economic and social realities created by the pandemic. A one-sided execution of the contract either by the government or the taxpayer would not cut it. After all, it takes two to tangle, and you can’t clap with one hand.

Departing from the OECD’s Conversation: Post-Pandemic Tax Policy Options for African Countries

In the tax world, this is significant because businesses react to tax policy. Tax policy, in turn, stimulates the interest of both local and international investors who are the key drivers of economic growth. Therefore, the challenges of the economic downturn will be more glaring and significant for African countries, who have a greater reliance on tax revenue from large taxpayers than more advanced economies.

Sustainable Finance and Investment in the Age of COVID-19

Rwanda envisions itself as the next Luxembourg or the next Singapore; a new financial center that will turn East Africa into an international power player and will service financial transactions throughout the African continent and beyond. While other financial centers are often accused of being tax havens, Rwanda is determined to avoid that label. It says the new hub, the Kigali International Financial Center (KIFC), will not allow business activity designed to avoid taxation. Details are forthcoming but Rwanda Finance Limited, the government entity that is developing the project, says all investments at KIFC must have a substantive business and economic purpose.

Significant Economic Presence laws key to fulfilling the post-pandemic social contract

By ensuring that highly digitalized businesses have nexus, these multinational corporations will cease to be “free-riders” leeching off the domestic taxpayers. It is also envisaged that this approach will ensure that highly digitalized businesses contribute to the social contracts of the societies from where they are making profits and whose public goods they are using for this purpose.

The Shift Toward a Distribution-Based Tax Framework in a Post-Pandemic World

Distribution-based approaches require a normative principle that integrates distributive justice considerations in a way that the predominant normative framework does not. If taxing rights are to be allocated based on distributional consequences, broader attention to the role of international tax in perpetuating or reducing international inequality is warranted.

Integral Ecology and Taxation: Catholic Social Teaching Pushing the Frontiers of Social Contract Theory in the Post-Pandemic Era

Our ethical conundrum as we think about issues of global distributive justice in the post-pandemic era is that social contract theory fails to provide an adequate framework for conceptualizing duties and obligations of international organizations to individuals, as opposed simply to their member states. The tension comes from the fact that people intuitively have a sense of justice which is offended by the manner in which power is wielded by those at the helm of the global financial order to place the interests of international organizations, banks, and multinational corporations over and above those of individual human beings, particularly those at the margins of the world economy.

Taxing for Vulnerabilities

The most relevant advantage of the Post-COVID Compulsory Loan would be the opportunity to amend the current Social Contract. The imposition of such a measure should be preceded by dialogue and negotiations to determine what sectors would contribute or benefits, earmarks, and public policies and measures.  Moreover, that may be a chance to increase trust and solidarity among stakeholders.