Taxing Africa

Moore, Mick; Prichard, Wilson; Fjeldstad, Odd‐Helge

doi:10.5040/9781350222861

Cited by 70 publications

(57 citation statements)

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“…For instance, it is proposed that governments should raise not less than 15% of the GDP in taxes. Indeed, in some extreme cases, the target rate of 20% as a minimum reasonable level necessary for the financing of public goods and services is often likened to achieving the SDGs (Moore et al, 2018). In this light, governments that depend largely on tax income will have to negotiate with taxpayers by delivering them more transparency and democracy in return for higher tax payments (Prichard et al, 2018), which mitigate income inequality.…”

Section: Discussion and Policy Implicationsmentioning

confidence: 99%

“…In doing so, we focus solely on Sub‐Saharan African countries. This region serves as a symbolic case study for the subsequent reasons, notably: (a) in the past, Sub‐Saharan Africa has seen a lower level of domestic tax mobilization (Moore et al, 2018) and (b) because of the close relationship between elites and political authority, it has been impossible to establish a proper tax system in many countries in that region (Feger & Asafu‐Adjaye, 2014; Moore et al, 2018). The present study then presumes that the inclusion of democracy as a policy variable would clarify the nexus between taxation and income inequality.…”

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confidence: 99%

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Taxation, democracy, and inequality in Sub‐Saharan Africa: Relevant linkages for sustainable development goals

Adegboye,

Uwuigbe

et al. 2023

Politics & Policy

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Given that the linear linkage between taxation and income inequality remains unclear, especially in Sub‐Saharan African countries, it is critical to explore how the redistribution channel of the tax system could mitigate income inequality within democratic institutions. Using the instrumental variable approach for robust analysis, this study explores the panel dataset of 42 Sub‐Saharan African countries from 1996–2014. The following findings are documented. First, both unconditional linkages between taxation and democracy overwhelmingly reduce income inequality. Second, harnessing democracy with taxation has a net effect that reduces income inequality. Overall, this study establishes that a strong democratic system strengthens the tax system for an income redistribution strategy to enhance income equality. This study is relevant for the achievement of Sustainable Development Goal (SGD) 1 on poverty reduction, SDG 10 on inequality, and SDG 16 on strong institutions.Related ArticlesGatchair, Sonia D. 2015. “Ideology and Interests in Tax Administration Reform in Jamaica.” Politics & Policy 43(6): 887–913. https://doi.org/10.1111/polp.12139.Nchofoung, Tii, Simplice Asongu, Vanessa Tchamyou, and Ofeh Edoh. 2022. “Gender, Political Inclusion, and Democracy in Africa: Some Empirical Evidence.” Politics & Policy 51(1): 137–55. https://doi.org/10.1111/polp.12505.Wang, Yingyao. 2017. “Why Tax Policy Is Not Politics in China: Public Finance and China's Changing State‐Society Relations.” Politics & Policy 45(2): 194–223. https://doi.org/10.1111/polp.12200.

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Section: Discussion and Policy Implicationsmentioning

confidence: 99%

mentioning

confidence: 99%

Taxation, democracy, and inequality in Sub‐Saharan Africa: Relevant linkages for sustainable development goals

Adegboye,

Uwuigbe

et al. 2023

Politics & Policy

View full text Add to dashboard Cite

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“…These features seem to have generated a state that while not without weaknesses, is marked by bargaining and brokering between economic elites and political leaders. 37 By contrast, South Sudan's reliance on oil revenue and a substantial international aid presence, seems to have replicated and reinforced the gatekeeper tendencies inherent in Sudan. Politically speaking that its trajectory has been dominated not only by extraversion and gatekeeper strategies, but also by extreme variants of zero-sum politics.…”

Section: International Relations: Implications Of Extraversion and Gatekeepingmentioning

confidence: 99%

Beyond the Gatekeeper state? Studying Africa’s states and state systems in the twenty-first century

Dorman

2018

Third World Thematics: A TWQ Journal

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This volume takes Fred Cooper's model of 'gatekeeper states'shaped as much by their international links as by their domestic practicesand explores the implications for our thinking about international relations in Africa and the wider international system. Because of their particular origins in the colonial system, African states have tended to be particularly sensitive to resource flows from external sources. Cooper's conceptualisation thus provides an important starting point from which to explore the dynamic changes occurring within and between African states, and the international system since the turn of the century. This introduction first sets out the gatekeeper model and how it has been used in thinking about African states. It then highlights the ways in which changing economic and political dynamics in Africa may challenge this model, and the implications for our thinking about states. These themes are further developed in the subsequent collection, which deploys a range of theoretical approaches and empirical case studies to interrogate, challenge, and expand Cooper's approach.

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“…In both developed and developing countries, the tax revenues needed to cover the ongoing costs of decent public services are being undermined by the ability of some of the wealthiest taxpayersincluding many transnational companiesto effectively opt out of the corporate tax system through a combination of ingenious (and lawful) tax haven transactions, and huge tax concessions awarded by governments themselves (Cobham, 2005;Otusanya, 2011;Otusanya et al, 2013;Moore, Prichard and Fjeldstad, 2018). Tax dodging is used to describe all of the ways that companies and rich individuals reduce their tax bills, whether through lobbying governments for tax breaks and lower corporate tax rates, exploiting obscure loopholes in tax laws or shifting profits into tax havens (Christian Aid, 2012).…”

Section: Introductionmentioning

confidence: 99%

“…Transnational companies are only able to dodge tax because the tax rules of countries allow Influence of tax dodging on tax justice them to. The developed countries such as the UK plays a central role in the "offshore" system that allows transnational companies to dodge tax, through its own global network of tax havens (Palan et al, 2010;Moore et al, 2018;Otusanya and Adeyeye, 2022). Tax avoidance refers to the artificial ways companies and individuals reduce their tax bills by exploiting tax rules in ways that were not intended.…”

Section: Introductionmentioning

confidence: 99%

Influence of tax dodging on tax justice in developing countries: some theory and evidence from Sub-Saharan Africa

Otusanya

Liu

Lauwo

2022

JFC

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Purpose The mobilising domestic resources, in particular, taxation, is key to unlocking the resources required for public investment in infrastructure, growth and sustainable finance. This study aims to share the perception that the tax arrangements of states and the transnational corporations (TNCs) of developed states have a critical effect on the development prospects of the less powerful states in developing countries. Design/methodology/approach This paper locates the role of TNCs tax practice within the broader dynamics of globalisation and the pursuit of profits, to argue that the drive of TNCs for higher profits can enrich our understanding of why some TNCs engage in tax dodging. This paper used publicly available evidence to shed light on the role played by TNCs in tax dodging practices in developing countries. Findings The evidence shows that tax havens and offshore financial centres, shaped by globalisation, are major structures facilitating the sophisticated tax schemes of highly mobile TNCs. This paper further shows that the corrosive effect of low-tax jurisdictions (“tax havens”) continues to represent a major obstacle to a regulation of global economic relations, which is required for maintaining sustainable social and economic development of poorer states. Research limitations/implications This paper used publicly available evidence to illuminate the role played by TNCs in tax dodging practices in Sub-Saharan Africa. Practical implications This paper, therefore, advocates a radical reform that could minimise the attendant problems created by the activities of TNCs and the enabling structures that facilitate these practices. Social implications Tax dodging has played a major role in causing serious damage to the economic and social landscape in developing countries. This in turn, has undermined social welfare and also investment in the public services, thereby eroding the quality of life and producing a decline in average life expectancy. Originality/value This paper is a general review of literature and evidence on contemporary developmental issues.

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Taxing Africa

Cited by 70 publications

References 0 publications

Taxation, democracy, and inequality in Sub‐Saharan Africa: Relevant linkages for sustainable development goals

Taxation, democracy, and inequality in Sub‐Saharan Africa: Relevant linkages for sustainable development goals

Beyond the Gatekeeper state? Studying Africa’s states and state systems in the twenty-first century

Influence of tax dodging on tax justice in developing countries: some theory and evidence from Sub-Saharan Africa

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