Can the OECD Author an Equitable International Tax Architecture?
Developing countries around the world are facing challenges funding necessary public services such as health, education, and climate change adaptation due to a lack of revenue. Double tax treaties, which predominantly favor the allocation of taxing rights to the residence jurisdiction in accordance with the OECD Model Tax Convention, are partly to blame for these States’ fiscal deficiency. Many double tax treaties were signed between developed and developing countries during colonization but remain in force today.Recognizing the bias in international tax rules, the UN has developed a model tax treaty that preserves more source taxation to the benefit of developing countries and, as of 2021, incorporates a solution to the issue of digital services income tax. However, opposition to UN-based international tax governance continues, while the OECD pushes its own agenda for international tax standard-setting.Studies of the OECD’s Model Tax Treaty and recently announced OECD/G20 Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy reveal that the OECD continues to produce solutions that give preferential treatment to wealthy countries. The de facto status of OECD’s leadership is insufficient reasoning for countries to accept a system that perpetuates a cycle of poverty for developing countries.While the international tax regime is still in a formative stage, stakeholders should push for a UN intergovernmental tax body to ensure a tax cooperation architecture built on equity and inclusive representation.NB: Since the writing of this paper, on December 30, 2022, the UN adopted a resolution on “Promotion of inclusive and effective tax cooperation at the United Nations.” As of May 19, 2023, consultations and negotiations are ongoing regarding what form the future of UN-led international tax cooperation will take
Year of publication: |
[2023]
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Authors: | Encarnación, Luca |
Publisher: |
[S.l.] : SSRN |
Subject: | OECD-Staaten | OECD countries | Internationales Steuerrecht | International tax law | Welt | World | Steuerpolitik | Tax policy | Doppelbesteuerung | Double taxation |
Saved in:
freely available
Extent: | 1 Online-Ressource (25 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 14, 2022 erstellt |
Other identifiers: | 10.2139/ssrn.4538426 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014345450
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