Missing Dollars : : Illicit Financial Flows from Commodity Trade.

• Superior document: International Development Policy Series ; v.17
• Author: Carbonnier, Gilles.
• TeilnehmendeR: Brugger, Fritz.; Bonanomi, Elisabeth Bürgi.; Dzanku, Fred M.; Insisienmay, Sthabandith.
• Place / Publishing House: Boston : : BRILL,, 2024.; ©2024.
• Year of Publication: 2024
• Edition: 1st ed.
• Language: English
• Series: International Development Policy Series
• Physical Description: 1 online resource (319 pages)

Illicit financial flows (IFFs) associated with commodity trade are eroding the tax bases of resource-rich developing countries. In this volume, 24 authors examine efforts and options to curb IFFs and reform taxation, both key elements of the wider agenda to restore confidence in the multilateral system.

Table of Contents

Front Cover -- Half Title -- Series Information -- Title Page -- Copyright Page -- Contents -- Foreword -- Preface -- Figures and Tables -- Abbreviations -- Notes on Contributors -- Part 1 Introducing the Thematic Volume: Key Findings and Recommendations -- Chapter 1 Curbing Illicit Financial Flows in Commodity Trade and Beyond -- 1 Introduction -- 2 Why Trade-Related IFF s Matter -- 3 Policy Context and Scholarly Debate -- 3.1 Global Tax Governance Reform -- 3.2 Assessing Trade Mispricing -- 4 'Curbing IFF s in Commodity Trade': Research Project Set-Up and Findings -- 4.1 Analytical Frameworks -- 4.2 Specific Findings and Policy Recommendations for Home and Host States -- 4.2.1 Recommendations for Host States -- 4.2.2 Recommendations for Home States -- 4.3 Implications for Future Research -- 5 Introducing the Thematic Volume -- 6 Concluding Reflections -- References -- Part 2 Definition, Measurement, and Drivers of Trade-Related IFFs -- Chapter 2 Measuring Illicit Financial Flows: New Data and Methods -- 1 Introduction -- 2 Evolving IFF Definitions -- 3 New Data and Methods -- 3.1 Trade-Based IFF s -- 3.2 Profit Shifting -- 3.3 Offshore Wealth -- 4 Concluding Remarks: Policies to Measure and Reduce IFFs -- References -- Chapter 3 Trade-Related Illicit Financial Flows in Southeast Asia: Evidence from Extractive and Agricultural Commodities in Laos -- 1 Introduction -- 2 Trade Mispricing Values in ASEAN -- 3 Laws and Regulatory Frameworks Combating IFFs in ASEAN -- 3.1 The General Legal Environment for Addressing Trade-Related IFF s in ASEAN -- 3.2 The Implementation of Transfer Pricing Rules in ASEAN -- 4 Production of Extractive and Agricultural Commodities in Lao PDR: Measuring Export Mispricing -- 4.1 The Extractive and Agricultural Sectors -- 4.1.1 Gold and Copper -- 4.1.2 Rubber and Coffee -- 4.2 Measuring Export Mispricing in Lao PDR.

4.2.1 Export Mispricing of Extractive Commodities -- 4.2.2 Export Mispricing of Agricultural Commodities -- 5 Legal Infrastructure in Lao PDR and Policy Recommendations for Addressing Trade-Related IFF s -- 5.1 Legal Infrastructure for Addressing Trade-Related IFF s in Lao PDR -- 5.2 Policy Suggestions for Addressing Trade-Related IFFs in the Short and the Long Run -- 5.2.1 Adoption of 'Simplified Methods' of Addressing Trade Mispricing as Part of the Short-Term Strategy -- 5.2.2 Policy Suggestions as to How to Address Trade Mispricing in Long-Term Planning -- 6 Conclusions -- References -- Chapter 4 Metals Streaming and Royalty Financing: A Framework for Assessing Mining Sector Financial Benefit-Sharing Implications for Governments -- 1 Introduction -- 1.1 Background -- 1.2 Objective -- 2 Metals Streaming and Royalty Financing: Overview and Key Features -- 2.1 Key Features of Metals Streaming and Royalty Financing Arrangements -- 2.1.1 Metals Streaming -- 2.1.2 Royalty Financing -- 2.2 Advantages and Disadvantages -- 3 Framework for Analysing the Impact of Metals Streaming and Royalty Financing on Government Revenue -- 3.1 Government Revenue Impact -- 3.2 Illustrative Example of Metals Streaming's and Royalty Financing's Impact on Host Government Mining Revenues -- 4 Challenges and Risks for Governments -- 5 Conclusion and Policy Considerations -- References -- Chapter 5 The Role of Tax Expenditures in Enabling Illicit Financial Flows -- 1 Introduction -- 2 TE s as Enablers of IFF s -- 3 TE s in Source Countries -- 3.1 The Role of SEZ s -- 3.2 The Role of TE s for the Extractive Industries -- 4 TE s in Recipient Countries -- 5 Concluding Remarks -- References -- Part 3 Policy Responses across Space and Time -- Chapter 6 The Battle Over Policies to Curb Trade-Related Illicit Financial Flows: Findings from a Q-methodology Study -- 1 Introduction.

2 Conceptual Framework -- 3 Methodology -- 3.1 Generation and Selection of Statements (Q-set Design and Q-sample) -- 3.2 Selection of Participants -- 3.3 Data Collection (Q-Sort Administration and Interviews) -- 4 Actor Analysis and Results -- 5 Interpretation -- 5.1 Perspective 1: The Compliance View -- 5.2 Perspective 2: The Enigma of Empowerment View -- 5.3 Perspective 3: Targeted Disclosure -- 6 Discussion -- 7 Conclusion -- Note and Acknowledgement -- Appendix -- References -- Chapter 7 Prescriptive Pricing and Stabilisation Clauses in Investment Agreements -- 1 Introduction -- 2 An Overview of Prescriptive Approaches to Countering Commodity Trade Mispricing -- 2.1 Mandated Use of Reference Prices for Valuing Commodity Export Sales -- 2.2 Regulated Valuation of Deductible Taxpayer Costs -- 2.3 Regulated Allocation of Profits -- 3 Possible Challenges under Investment Law -- 4 Defence Arguments under International Investment Law -- 4.1 Allegations of Wrongdoing by the Investor -- 4.2 Generally Available Excuses -- 4.3 Public Interests -- 5 Counterarguments under Human Rights Law -- 5.1 A Human Rights Framing of the Issue -- 5.2 Conflict Resolution and Conflict Avoidance -- 5.2.1 Relationship of Conflict -- 5.2.2 Relationship of Interpretation -- 6 Concluding Remarks -- References -- Chapter 8 Tax Reforms in Hydrocarbons and Mining in Chile, Colombia and Peru 2021-2023 -- 1 Introduction -- 1.1 International Initiatives for Domestic Revenue Mobilisation -- 1.2 The Importance of the Extractive Industries in Colombia, Chile and Peru -- 2 Overall Tax Reform Proposal -- 2.1 The Colombian Tax Reform Proposals -- 2.1.1 Taxes on the Extractive Industries -- 2.1.2 The Permanent cit Surcharge for Oil and Coal -- 2.1.3 Non-deductible Royalty for Oil and Coal -- 2.1.4 Total Tax Reform Amounts Raised from the Extractive Industries in Colombia.

2.2 The Chilean Tax Reform Proposals -- 2.2.1 The Mining Royalty-Chile -- 2.2.2 The Lithium Situation -- 2.3 The Peruvian Tax Reform Proposals -- 3 Impact of the Reforms: Government Take versus Revenue Competitiveness with Other Countries -- 3.1 Calculating the Government Take in Mining -- 3.2 The Government Take of Chile and the Jorrat Method -- 3.3 The Government Take of Peru and the fari Model -- 3.4 The Government Take of Colombia: The Effective Tax Rate -- 4 Assessing the Tax Reforms of 2021 and 2022 -- 5 Conclusions -- References -- Chapter 9 Potential Illicit Financial Flow Risks in Ghana's Gold-for-Oil Transaction -- 1 Introduction -- 2 Context of the G4O Policy -- 3 The Economics of the G4O Transaction -- 3.1 Examining the Relationships between Exchange Rates and Oil Imports -- 3.2 Results of the Empirical Econometric Analysis -- 4 Political Economy and Legal Analysis of the G4O Policy -- 4.1 G4O Governance Architecture and Stakeholder Views on Possible iff Risks -- 4.2 Legal Basis for the G4O Deal -- 4.3 A Legal Review of the G4O Programme Framework -- 5 Conclusion and Implications -- Appendix -- References -- Part 4 Looking Forward: Energy Transition and Resource Mobilization -- Chapter 10 Illicit Financial Flows, Extractive Sectors, and the Energy Transition: Building State Capacity to Finance the sdg s -- 1 Introduction -- 2 Commodity Sectors, State Capacity, IFF s and the SDGs -- 2.1 Commodity Sectors' Vulnerability to IFF s -- 2.2 State Capacity and Commodity Sectors -- 2.3 Harnessing the Energy Transition for Sustainable Development? -- 3 International Instruments to Reduce IFF s in Relation to the Energy Transition -- 4 Conclusion -- References -- Index -- Back Cover.