Advanced Search
MyIDEAS: Login to save this paper or follow this series

Taxation of Foreign Investments in Malawi. Lessons from Japan

Contents:

Author Info

  • James, Kenani
Registered author(s):

    Abstract

    Foreign investments remain an important source of economic growth in both developing and developed countries. Their contribution to capital formation, employment opportunities, revenues and technology to the host countries are likely to continue creating strong competition among countries in attracting them. In order to be competitive, developing countries provide generous tax incentives to MNEs which tend to encourage high incidence of tax avoidance and evasion. With inadequate institutional capacity to ensure tax compliance, governments are losing more tax revenues from the MNEs who use complex accounting mechanisms to avoid tax payments. This paper has explained how Malawi Government has been taxing foreign investments to achieve optimal balance of increasing domestic resource mobilization and considerably attract new foreign investments. The central objective of the paper was to investigate taxation of the foreign investments in Malawi. The study primarily focused on Malawi tax system in comparison with international taxation from Japanese tax system. Furthermore, the paper investigated tax anti-avoidance measures that are available in domestic legislations which ensure tax compliance from the MNEs. The paper also discussed tax erosion practices that are associated with MNEs such as transfer pricing, internal debt arrangements among others that help to reduce taxable income of the MNEs. The paper has provided the shortfalls of Malawi international taxation system and some practical solutions have been recommended emanating from Japanese tax system.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://mpra.ub.uni-muenchen.de/28191/
    File Function: original version
    Download Restriction: no

    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28191.

    as in new window
    Length:
    Date of creation: May 2010
    Date of revision:
    Handle: RePEc:pra:mprapa:28191

    Contact details of provider:
    Postal: Schackstr. 4, D-80539 Munich, Germany
    Phone: +49-(0)89-2180-2219
    Fax: +49-(0)89-2180-3900
    Web page: http://mpra.ub.uni-muenchen.de
    More information through EDIRC

    Related research

    Keywords: Malaw; Japan; MNEs; Foreign Investments; International Taxation;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Wamser, Georg, 2009. "Essays on Behavioral Responses of Multinational Enterprises to International Taxation," Munich Dissertations in Economics, University of Munich, Department of Economics 9697, University of Munich, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:28191. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.