THE MULTILATERAL INSTRUMENT AND DOMESTIC RESOURCE MOBILISATION IN EAST AFRICA

"The Multilateral Instrument and Domestic Resource Mobilisation in East Africa" provides an overview of the Multilateral Instrument (MLI) and its implications for domestic revenue mobilization in Africa, with a focus on the East African region. The paper compares the MLI with the East African Community (EAC) and ATAF model double taxation agreements (DTAs), analyzing key areas such as hybrid mismatches, treaty abuse, permanent establishments, dispute resolution, and mandatory arbitration. It also explores the impact of the MLI on base erosion and profit shifting and the digital economy. The paper concludes with policy recommendations, emphasizing the need for caution and a wait-and-see approach before signing the MLI.