Архив статей журнала
Domestic revenue mobilisation has become a topical issue in developing countries, and their capacity to regulate multinational enterprises (MNE) transactions to minimise Base Erosion and Profit Shifting (BEPS) remains a formidable task. Faced with legislative deficiencies, implementation incapacities, and being at the nascent stages of adopting transfer pricing (TP) regulation, developing countries have remained at the mercy of MNEs’ BEPS practices. The complexity and intricacies of intragroup transactions have an impact on profit allocation, thus affecting the distribution of taxing rights across countries where these MNEs operate. This study explores the regulatory policies toward international transfer pricing in the context of developing
nations and the associated challenges. The paper proffers possible solutions to improve TP regulation and implementation. Specifically, the paper centres its attention on Zimbabwe, one of the developing nations that have implemented transfer pricing legislation in recent years. Mitigating the impact of BEPS through efforts, such as regulating and managing TP would avail potential substantial finance to shift developing countries from aid dependence to self-sustenance, yet these efforts face a lot of hurdles. Research that contributes to knowledge development in the area, evaluates the hurdles faced and contributes to policy and implementation improvements becomes vital. This study found that Zimbabwe is faced with challenges such as lack of legislative clarity, lack of comparability data, shortage of resources, lack of capacity and dysfunctional double taxation agreements in dealing with transfer pricing. The study recommends Zimbabwe should improve legislation, create TP databases, improve revenue authorities’ capacity, and increase stakeholder awareness of TP.
The empirical studies on the potential interconnection between tax and financial growth have gathered a great deal of attention from scholars and policymakers. However, the impact of regulatory capital on taxation performance has been ignored. In this context, the study aims to provide new discussion by assessing the linkage between capital adequacy and taxation revenues in the case of Brazil, Russia, India, China, and South Africa (BRICS) economies. We aim to find out the impact of capital adequacy ratios on the taxation performance of BRICS countries. We hypothesize that a stronger banking system is positively associated with higher taxation performance. A sound banking and financial system promotes economic development and growth, also resulting in the firms’ profitability and ultimately increasing the government’s tax revenues. Using the advanced quantile panel technique of the Methods of Moments Quantile
Method (MM-QR), the study showed that capital adequacy positively influences taxation sustainability in the BRICS economies. Besides, the findings illustrated that economic growth positively increases taxation revenues in the BRICS economies. The study suggests that regulatory capital policies can positively influence financial stability by mitigating bank risk-taking incentives and offering a buffer against losses. Hence, an increase in capital adequacy will promote financial stability, which in turn leads to increased taxation revenues. However, higher capital adequacy may increase the franchise value of core banks’ activities, which in turn allows banks to attract new investments and funds that can be used for investment in risky market-based activities. Based on the empirical analysis, the study concludes that policymakers should focus more on capital regulation and sustainable taxation revenues.