By Miftaudeen Raji

A recent study has revealed the need for governments to grant tax concessions and waivers to corporate entities and foreign private investors. 

The findings reveal that countries, in a bid to attract foreign investment in their countries, have begun to grant corporations tax concessions, especially in highly capital-intensive sectors such as the manufacturing and construction sectors. 

The study conducted and published by Mondaq was conducted by a Nigerian tax researcher, Philips Adekemi. 

He investigated the various causes of the dwindling foreign investments in Africa, especially from multinational entities and corporate organizations. He recommended that the exemption of taxes that operate in the free trade zone generate revenue, increase employment rates, and significantly improve foreign direct investments in most African countries. 

The research further takes a multi-jurisdictional approach by comparing the taxation laws of the UK, UAE, and United States, which grant tax waivers to corporations and investors in the manufacturing and construction sectors. 

The result of this research reveals that the adoption of these laws has paved the way for local and foreign investors to further invest sums of money while operating their businesses within the ambits of law. 
Innovation and expertise

Philips Adekemi’s research is clear evidence of his contribution and rich expertise to the business taxation sector. His thorough research is the first to be published in the business taxation field, especially as it relates to the legal implications of taxation in foreign trade zones. 

His work investigates the nexus between taxation and foreign investment and provides an avenue for governments and private entities to adopt tax compliance strategies. 

His findings underscore the alarming decline in foreign investment based on tax considerations.

The deliberate analysis by the author of the African Continental Free Trade Agreement will allow for easy movement across the borders of member states. 

By implication, it is projected that the increase in trade activities will require business hubs across board to seek the employment of talents from various parts of the continent and solidify their staff strength. This will in turn increase the creation of jobs and lower the unemployment rate in the signatory countries.

The profound investigations and insights drawn from Philips’ research significantly contribute to the realisation of revenue from income through tax strategies. 

Philips’ novel research has carved a niche in the vast field of international and business tax for local and foreign entities.

The adoption of his innovative approach will further ensure tax compliance and boost investor confidence in the investment sectors of most African countries.