The Typology of Corruption Risks, Mitigation Measures and Incentives in the Extractive Value Chain was released in April 2016 to provide a toolkit for identifying, assessing and proactively managing corruption risks across the extractive value chain. This includes the process from deciding to extract and the awarding of rights down through revenue collection, management and spending. Not only are risks identified and mapped, but concrete, appropriate and complementary responses are also set out, which can be tailored to fit home and host country governments and extractive companies, raising the incentives to effectively tackle those risks. The Typology covers a broad spectrum of inter-connected policy areas, including licensing, procurement, tax issues and public financial management.
The Typology can be used as a benchmarking tool by stakeholders or integrated into existing methodological tools to carry out sector-specific integrity scans or peer-reviews, such as the African Peer Review Mechanisms.
Tax systems that provide income tax deductions for interest without making any similar provision for equity create an incentive for the use of debt. While this is true of all industries, this note examines the particular base erosion risks from the use of debt by mining multinational enterprises. It responds to a concern of many developing countries that multinational enterprises use debt “excessively” in mineral-producing countries as a mechanism to shift profits abroad.
This practice note aims to increase policy-makers’ knowledge of the process of determining the value of exported minerals. The focus is on determining the value (or quality) of mineral exports, not the quantity. While companies may underestimate both, verifying the value of minerals is more complex and requires greater technical expertise.
This practice note looks at tax incentives in the mining sector. For many developing countries, receipts from mining are a major source of revenue. The central task for policy-makers, therefore, is to design fiscal regimes for the mining industry that raise sufficient revenue, while providing adequate inducement to invest.