scholarly journals Getting the Short End of the Stick: Power Relations and Their Distributive Outcomes for Lower-Income Countries in Transfer Pricing Governance

2021 ◽  
pp. 3-27
Author(s):  
Cassandra Vet ◽  
Danny Cassimon ◽  
Anne Van de Vijver
Keyword(s):  
Developing Countries ◽  
Power Relations ◽  
Tax Reform ◽  
Transfer Pricing ◽  
Corporate Taxation ◽  
Lower Income ◽  
Split Method ◽  
Material Interests ◽  
Global Initiative ◽  
Lower Income Countries

AbstractIt is widely recognized that international corporate taxation holds a distributional bias toward advanced economies and that developing countries only play a marginal role in tax governance-making. Yet, it is the ambition of both the G20 and the Organisation for Economic Co-operation and Development (OECD) to integrate developing countries in the BEPS Inclusive Framework. The Base Erosion and Profit Shifting (BEPS) action is the latest global initiative to update the international framework of corporate taxation and curb corporate tax avoidance. On one hand, the integration for developing countries within the policy-making forums remains incomplete and focused on the implementation of the global tax rules. On the other, even when lower-income countries have a seat at the table, uneven power relations shape the distributional outcomes of the G20-OECD tax reform project. This analysis of the power relations at play during the revision of the transactional profit split method (TPSM) reveals how dominant logics on value creation work against the material interests of developing countries in the distribution of taxing rights. Therefore, for a tax reform to be truly legitimate for developing countries, it should emancipate and even “decolonize” the discourse and ideas of the international tax regime. While the updated OECD guidelines on transfer pricing expanded the size of the overall cake of taxable profits, the dominant logics and criteria of the guidance make it difficult for lower-income countries to obtain a decent slice of the cake and actually eat it.

scholarly journals Global inequalities in taxing rights: An early evaluation of the OECD tax reform proposals

2019 ◽  
Author(s):  
Alex Cobham ◽  
Tommaso Faccio ◽  
Valpy FitzGerald
Keyword(s):  
Tax Reform ◽  
Oecd Countries ◽  
Corporate Taxation ◽  
Lower Income ◽  
Corporate Tax ◽  
Early Evaluation ◽  
Public Evaluation ◽  
Independent Commission ◽  
Lower Income Countries

The current OECD process to reform the international rules governing corporate tax, aimed to achieve a consensus solution by 2020, has finally recognised the need to introduce elements of formulary apportionment to allocate the profits of multinationals and is framed explicitly in terms of redistributing taxing rights between countries. In this paper we provide the first public evaluation of the redistribution of taxing rights associated with the leading proposals of the OECD, IMF and the Independent Commission for the Reform of International Corporate Taxation (ICRICT). The first key finding is that that reallocation of taxing rights towards “market jurisdictions”, as it is currently understood, is likely to be of little benefit to non-OECD countries. Indeed, the proposal is likely to reduce revenues for a range of lower-income countries. Second, all of the proposals deliver a much broader distribution of benefits if some element of taxing rights is apportioned according to the location of multinationals’ employment, and not only of sales.

scholarly journals At the Table, Off the Menu? Assessing the Participation of Lower-Income Countries in Global Tax Negotiations

2020 ◽  
Author(s):  
Rasmus Corlin Christensen ◽  
Martin Hearson ◽  
Tovony Randriamanalina
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Step Change ◽  
Formal Structure ◽  
Lower Income ◽  
Corporate Tax ◽  
Equal Footing ◽  
Lower Income Countries

Since 2013, the formal structure of global corporate tax policymaking at the OECD has changed. Decisions are no longer made by 37 OECD members, but by 137 countries from all regions and levels of development through the ‘Inclusive Framework’ (IF). Official documentation emphasises that all countries participate on an ‘equal footing’, but some participants and observers have emphasised that developing countries in particular face practical obstacles that lead to unequal participation in practice. In this paper, we assess these claims, drawing primarily on 48 interviews with negotiators, policymakers and stakeholders involved in global tax discussions. We find that the explosion in formal membership has not in itself led to the step-change in developing country influence that the raw numbers imply. This is because of a combination of structural obstacles that are not unique to the IF, and some challenging aspects of the OECD’s way of working. Yet, lower-income countries have made some modest achievements to date, and there are signs of incremental progress towards a more effective presence. We develop a typology of mechanisms through which successes have been achieved: association with the efforts of more powerful states, anticipation of lower-income countries’ needs by the OECD secretariat and others, collaboration to form more powerful coalitions, and the emergence of expert negotiators with individual authority.

The effects of debt restructurings on income inequality in the developing world

2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Spending ◽  
Tax Reform ◽  
Social Spending ◽  
The Poor ◽  
The Rich ◽  
The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

Who or what is a development manager?

1998 ◽  
Vol 17 (1) ◽  
pp. 63-68
Author(s):  
Ron Clarke
Keyword(s):  
Social Development ◽  
Management Training ◽  
Macro Level ◽  
Lower Income ◽  
Development Management ◽  
Development Policies ◽  
Is Development ◽  
Lower Income Countries ◽  
Development Manager

Although ill-defined, the term “development management” is broadly understood to refer to the management of economic and social development, and the reduction of poverty, at various levels from macro to micro, in lower income countries. “Development management” pre-supposes “development managers”, but this term is even less well defined. Popular perceptions suggest that the concept is less easily applied at the macro level, but more readily at the micro, and also more to someone who is development-minded than someone whose job is to manage or implement development policies and processes, although the two can overlap. This perception – and its implications for management training – is followed through to suggest a profile of a development manager as someone who is forward-thinking, people-oriented, resourceful, flexible in his or her approach to means of achieving objectives, and morally committed.

scholarly journals Impact of Domestic and Transboundary Conflicts on Militarization

2020 ◽  
Vol 1 (1) ◽  
pp. 24-35
Author(s):  
Hafiz Syed Mohsin Abbas ◽  
Xiaodong Xu ◽  
Chunxia Sun ◽  
Saif Ullah ◽  
Muhammad Ahsan Ali Raza
Keyword(s):  
High Income ◽  
Global Perspective ◽  
Fragile States ◽  
Lower Income ◽  
Security Issues ◽  
Military Equipment ◽  
Income Groups ◽  
Global Concern ◽  
Global Peace ◽  
Lower Income Countries

AbstractSecurity issues are the global concern nowadays, which triggers government spending on military equipment and supply chain. This paper analyzes the global perspective of cohesion indicators on Militarization by using 177 countries panel data from the Years 2011-2018 based on middle/lower and high-income groups. By applied OLS and Fixed Effect modelling, we explored the idea that Group Grievance and Population Growth Rate have a significant impact on Militarization in both income groups worldwide. However, middle/lower income group’s Militarization is more fragile than high-income groups due to state cohesion. It further analyses that Security Apparatus and Fractionalization Elite are significant in Middle/ lower-income countries and have an insignificant impact on Militarization in high-income countries. In the end, the study suggested that the United Nations must keenly observe the militarization trends of the less fragile states by considering global peace concerns and should play its role to resolve the bilateral conflicts in the region to maintain world peace environment.

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