Comparative Analysis of Tax Harmonization in Economic Community of West African States (ECOWAS), African Union (AU) and European Union (EU)

Abstract

This paper is to investigate a comparative analysis of tax harmonization in ECOWAS, AU and the EU. It examines the key issues in the tax harmonization efforts across these regional blocs. It highlights the components of tax harmonization carried out so far in the ECOWAS and the driving factors of tax harmonization in the EU, including the success attained so far in some of the regional blocs in Africa, as well as the constraints to tax harmonization efforts, particularly within the context of a broader regional context like the AU.  It goes further discussing the prospect for result-oriented tax harmonization in the ECOWAS and AU, against the backdrop of the success achieved in the EU as a model. The paper recommends good governance, efficient tax harmonization treaties and protocols, political will to implement and institutional reforms to enable the coordination and harmonization of tax in order to foster a more prosperous business, trade and investment environment in the ECOWAS and AU.

Keywords: Tax harmonization, Non-cooperative tax regimes, tax legislation