As globalization eviscerates national borders, governments in both developed and developing countries are
discovering that their tax base is eroding, especially their ability to tax the proceeds and profits from corporate
investment and finance Domestic revenue mobilization is key to sustainable development finance – only selfsufficiency
will allow the development of fully-functioning states with flourishing systems of political representation and economies reflecting societies’ expressed preferences in regard to, for example, inequality.
The significant of this paper therefore is that it will enable the revenue authority take necessary steps to prevent
tax avoidance and tax evasion so as to increase the level of domestic revenue for development. It concluded that
claims of corporate social responsibility are undermined when low corporate tax payments are exposed and a
process of tax competition at the global level undermines the social contract previously set within the national
arena, as states compete to offer tax exemption to capital. The paper suggested that with effective tax
administration, adequate taxation of transnational corporations, tax compliance as part of corporate
accountability, international tax cooperation, fight against bribery and corruption, arm length international
trade negotiations and reduction in military expenditure, the problems are more likely to be solved
