Technology, Artificial Intelligence & Digitalization | Reconstructing Fiscal Institutions Beyond Colonial Legacies

This paper examines how technology, artificial intelligence (AI), and digitalisation has the potential to reform fiscal institutions that are still rooted in colonial-era paradigms. It argues that the traditional tax frameworks that have been designed to support resource extraction and control, are ill-equipped to capture the intangible value generated by digital economies. By focusing on Africa, the study highlights how colonial taxation legacies continue to undermine fiscal sovereignty and exacerbate structural inequalities. It critiques conventional concepts such as permanent establishment and transfer pricing, which arguably fail to address modern challenges that are posed by digital services and data-driven transactions. The paper further explores how AI and digital tools can enhance tax administration and reduce profit shifting by multinational corporations, while cautioning against the risks of digital colonialism. The study concludes by recommending for a decolonial approach to fiscal policy that supports equitable wealth distribution and genuine economic sovereignty in the digital age.