When the Hunters Learn to Shoot Without Missing, the Birds Learn to Fly Without Perching Protecting source taxation in Uganda’s upstream oil sector from artificial profit shifting

  • Brian Collins Ocen
Keywords: Illicit Financial Flows; Artificial Profit Shifting; Anti-Abuse Rules; Judicial Cooperation; Resource Colonialism

Abstract

This paper examines the phenomenon of artificial profit shifting as a component of illicit financial flows. Uganda’s upstream oil sector involves a rent sharing regime with the non-resident international oil companies. The involvement of international oil companies creates taxing rights for host governments. Unfortunately, these rights can be susceptible to artificial profit shifting - an aggressive strategy of tax avoidance which contravenes applicable anti-abuse tax laws and therefore falls within the prescriptive envelope of illegality. This paper discusses the unique opportunity for the application of anti-abuse tax laws and the need for judicial cooperation in doing so, as a tool against artificial profit shifting; whose negative impact on the tax-to-GDP ratio continues to undermine Uganda’s efforts in domestic resource mobilisation to alleviate poverty.

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Published
2021-07-01
How to Cite
Brian Collins Ocen. (2021). When the Hunters Learn to Shoot Without Missing, the Birds Learn to Fly Without Perching Protecting source taxation in Uganda’s upstream oil sector from artificial profit shifting. Academics Stand Against Poverty, 1(1), 74-86. Retrieved from http://journalasap.org/index.php/asap/article/view/11
Section
Articles