Taxation of Offshore Indirect Transfers (OIT) in developing countries
type: CreativeWork
description: In a world of globalized capital, individuals, companies, individuals, and nations, often benefit from investment opportunities in which capital is free to flow across borders and jurisdictions with limited restrictions. Foreign direct investment in developing nations is certainly one of the perceived benefits of this milieu in which capital is liberalized, as it often provides critical funds for resource extraction, industrial growth or increased agricultural output, and, supposedly, an overall influx of positive development potential (Rixen, 2015: 325). Indeed, many developing nations work very hard to attract foreign investment capital, including through tax incentives, which can create opportunities for utilizing natural resources, employment, and infrastructure development. Overall, international investment is often portrayed as win-win scenario, with some, but few drawbacks. However, this does not mean that the international flow of capital is not without its complications. Not all pertinent actors involved in the global chains of investment, industry, and development, feel as though the international system is a level playing field for all parties. This is particularly true when it comes to the notion of taxation, which is on one hand largely a domestic issue, meaning that taxation policy is ultimately in the jurisdiction of national governments. Yet with that said, the international arena in the early part of the second millennium is a world of international business in which capital investment flows readily across and between jurisdictions, heightening the need for more robust, creative, and far-reaching policy and legislation that allows nations to capture the taxable income generated from their domestic resources in foreign destinations, because of the high degree of foreign ownership through globalized capital (Toledano, Bush, & Mandelbaum, 2017: 13). Depending on the country in question, this can be a daunting task. The reality of the international aren…
abstract: In a world of globalized capital, individuals, companies, individuals, and nations, often benefit from investment opportunities in which capital is free to flow across borders and jurisdictions with limited restrictions. Foreign direct investment in developing nations is certainly one of the perceived benefits of this milieu in which capital is liberalized, as it often provides critical funds for resource extraction, industrial growth or increased agricultural output, and, supposedly, an overall influx of positive development potential (Rixen, 2015: 325). Indeed, many developing nations work very hard to attract foreign investment capital, including through tax incentives, which can create opportunities for utilizing natural resources, employment, and infrastructure development. Overall, international investment is often portrayed as win-win scenario, with some, but few drawbacks. However, this does not mean that the international flow of capital is not without its complications. Not all pertinent actors involved in the global chains of investment, industry, and development, feel as though the international system is a level playing field for all parties. This is particularly true when it comes to the notion of taxation, which is on one hand largely a domestic issue, meaning that taxation policy is ultimately in the jurisdiction of national governments. Yet with that said, the international arena in the early part of the second millennium is a world of international business in which capital investment flows readily across and between jurisdictions, heightening the need for more robust, creative, and far-reaching policy and legislation that allows nations to capture the taxable income generated from their domestic resources in foreign destinations, because of the high degree of foreign ownership through globalized capital (Toledano, Bush, & Mandelbaum, 2017: 13). Depending on the country in question, this can be a daunting task. The reality of the international aren…
author: Thurneysen, Bastian
keywords: commercial law
date published: 2020
date modified: 2026-07-24T01:33:57Z
provider: University of Cape Town
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Department of Commercial Law

PropertyValue
property ID: Handle
value: http://hdl.handle.net/11427/32373