WHEN FOREIGN INVESTMENT AND ITS DISPUTE MECHANISMS WORK AGAINST AFRICAN ECONOMIC ADVANCEMENT: REVENUE AND SUSTAINABLE DEVELOPMENT IMPLICATIONS

Marie-Louise Aren & Louis Koen

ABSTRACT

This article explores the importance of the disclosure of beneficial ownership in states revenue collection efforts and its implications for sustainable development. It critically analyses the concealment of beneficial ownership and investment tribunals uncritical acceptance of jurisdiction in such cases. The article suggests that this uncritical acceptance increases the risk of money laundering and could potentially breach fundamental principles of transnational policy. These tribunals have also been hesitant to consider the investors failure to pay taxes when awarding damages. In so doing, the tribunal offers a powerful enforcement tool for investors but leaves the state with only limited recourse.

Keywords: Taxation; Beneficial Ownership; Investment Arbitration; Revenue Law Exception; Counterclaims.