DANGERS OF DOUBLE TAX AGREEMENTS IN FINANCING DEVELOPMENT IN AFRICA

This publication titled "Dangers of Double Tax Agreements in Financing Development in Africa" examines the negative implications of Double Taxation Agreements (DTAs) on financing development in Africa. While DTAs aim to allocate taxing rights between contracting states, they are often used as tools to attract Foreign Direct Investment (FDI) through preferential tax rates and incentives. However, there is a lack of evidence to support the notion that DTAs attract FDIs and contribute to Domestic Resource Mobilization (DRM). Instead, DTAs have led to treaty abuse, tax avoidance, and erosion of tax revenues in African countries. The study recommends comprehensive reviews of DTAs, renegotiation of outdated provisions, and capacity building for tax treaty negotiators in African developing countries.