Can states unilaterally impose additional royalties?
Article from: OGEL 2 (2005), in Taxation
Can states unilaterally impose additional royalties?
The question that is raised is in effect an economic one - but also a legal one. And countries are as a rule in the long-term better off if they observe a legal rule rather than breaching it. Short-term that can and is often done by government, long-term it rarely pays off and is a sign of lack of governance quality and leads to nothing good. So the response from a legal perspective is: 1) Governments have full tax sovereignty in principle and as a starting point. They can raise taxes, add royalties - and that is usually done if it seems to make political and ...