Global Governance, Tax Treaties, and Credible Commitments

Johnson, Austin

doi:10.1177/0043820018776410

“…Additionally, the potential for intensified tax competition due to coordinated cross-border loss compensation further underscores the complexities in reaching international consensus on tax regulations (Haufler & Mardan, 2014;Adaga et al, 2024). Moreover, the role of tax treaties in spurring cross-border investment in securities has been highlighted as a factor in global governance and credible commitments (Johnson, 2018). Case studies of successful international tax cooperation initiatives can be observed in the context of reducing evasion by judiciously lowering tariffs and enforcing the law at the border (Tadesse, 2022).…”

Section: International Cooperation and Coordinationmentioning

confidence: 99%

Legal Frameworks and Tax Compliance in the Digital Economy: A Finance Perspective

Beatrice Oyinkansola Adelakun,

Joseph Kuba Nembe,

Bisola Beatrice Oguejiofor

et al. 2024

Eng. sci. technol. j.

0

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In the wake of rapid digitalization, the landscape of commerce has undergone a profound transformation, presenting unprecedented challenges to traditional tax systems and legal frameworks. This abstract examines the evolving dynamics of tax compliance within the digital economy through the lens of finance. The digital economy encompasses a broad spectrum of economic activities facilitated by digital technologies, including e-commerce, digital platforms, and virtual currencies. These innovations have blurred the boundaries of traditional tax jurisdictions, leading to complexities in determining tax liabilities and enforcement mechanisms. As such, the adequacy of existing legal frameworks in addressing tax challenges posed by the digital economy has come under scrutiny. From a finance perspective, ensuring tax compliance in the digital economy involves understanding the intricate interplay between technology, business models, and regulatory frameworks. Digital businesses often operate across multiple jurisdictions, exploiting loopholes and jurisdictional discrepancies to minimize tax obligations. Such practices have raised concerns regarding tax fairness and the erosion of tax bases, prompting policymakers to explore new regulatory approaches. One key aspect of addressing tax compliance in the digital economy is the development of international cooperation and coordination mechanisms. Given the transnational nature of digital transactions, effective tax enforcement requires collaboration among countries to combat tax evasion and profit shifting. Initiatives such as the Base Erosion and Profit Shifting (BEPS) project by the OECD seek to establish common standards and guidelines for taxing digital businesses. Moreover, the emergence of innovative technologies, such as blockchain and artificial intelligence, presents both opportunities and challenges for tax authorities. While these technologies offer potential solutions for enhancing tax administration and enforcement, they also introduce new complexities, such as the anonymity of transactions and the difficulty of tracking digital assets. Navigating the complexities of tax compliance in the digital economy requires a multifaceted approach that integrates legal, technological, and financial perspectives. By fostering international cooperation, leveraging technological innovations, and adapting regulatory frameworks, policymakers can mitigate tax challenges and promote a fair and sustainable tax system in the digital age. Keywords: Tax, Digital Economy, Finance, Legal, Review.

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“…Additionally, the potential for intensified tax competition due to coordinated cross-border loss compensation further underscores the complexities in reaching international consensus on tax regulations (Haufler & Mardan, 2014;Adaga et al, 2024). Moreover, the role of tax treaties in spurring cross-border investment in securities has been highlighted as a factor in global governance and credible commitments (Johnson, 2018). Case studies of successful international tax cooperation initiatives can be observed in the context of reducing evasion by judiciously lowering tariffs and enforcing the law at the border (Tadesse, 2022).…”

Section: International Cooperation and Coordinationmentioning

confidence: 99%

Legal Frameworks and Tax Compliance in the Digital Economy: A Finance Perspective

Beatrice Oyinkansola Adelakun,

Joseph Kuba Nembe,

Bisola Beatrice Oguejiofor

et al. 2024

Int. j. adv. economics

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In the wake of rapid digitalization, the landscape of commerce has undergone a profound transformation, presenting unprecedented challenges to traditional tax systems and legal frameworks. This abstract examines the evolving dynamics of tax compliance within the digital economy through the lens of finance. The digital economy encompasses a broad spectrum of economic activities facilitated by digital technologies, including e-commerce, digital platforms, and virtual currencies. These innovations have blurred the boundaries of traditional tax jurisdictions, leading to complexities in determining tax liabilities and enforcement mechanisms. As such, the adequacy of existing legal frameworks in addressing tax challenges posed by the digital economy has come under scrutiny. From a finance perspective, ensuring tax compliance in the digital economy involves understanding the intricate interplay between technology, business models, and regulatory frameworks. Digital businesses often operate across multiple jurisdictions, exploiting loopholes and jurisdictional discrepancies to minimize tax obligations. Such practices have raised concerns regarding tax fairness and the erosion of tax bases, prompting policymakers to explore new regulatory approaches. One key aspect of addressing tax compliance in the digital economy is the development of international cooperation and coordination mechanisms. Given the transnational nature of digital transactions, effective tax enforcement requires collaboration among countries to combat tax evasion and profit shifting. Initiatives such as the Base Erosion and Profit Shifting (BEPS) project by the OECD seek to establish common standards and guidelines for taxing digital businesses. Moreover, the emergence of innovative technologies, such as blockchain and artificial intelligence, presents both opportunities and challenges for tax authorities. While these technologies offer potential solutions for enhancing tax administration and enforcement, they also introduce new complexities, such as the anonymity of transactions and the difficulty of tracking digital assets. Navigating the complexities of tax compliance in the digital economy requires a multifaceted approach that integrates legal, technological, and financial perspectives. By fostering international cooperation, leveraging technological innovations, and adapting regulatory frameworks, policymakers can mitigate tax challenges and promote a fair and sustainable tax system in the digital age. Keywords: Tax, Digital Economy, Finance, Legal, Review.

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“…This complexity is further compounded by the unintended consequences of bilateralism, such as treaty shopping and the intricate nature of the international tax system composed of thousands of bilateral tax treaties (Arel-Bundock, 2018). Tax treaties, promulgated by international organizations, serve the purpose of systematically dividing cross-border taxable base between countries to eliminate market distortions from inharmonious domestic tax policies (Johnson, 2018). Disputes over tax jurisdiction and allocation of taxing rights are common in the context of multinational corporations and international tax treaties.…”

Section: Complexity Of International Tax Treaties and Agreementsmentioning

confidence: 99%

Cross-Border Tax Challenges and Solutions in Global Finance

Joy Ojonoka Atadoga,

Joseph Kuba Nembe,

Noluthando Zamanjomane Mhlongo

et al. 2024

Financ. account. res. j.

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In the dynamic landscape of global finance, cross-border transactions have become increasingly prevalent, facilitating economic growth and international trade. However, accompanying this expansion are complex tax challenges that both multinational corporations and governments encounter. This abstract delves into the multifaceted issues arising from cross-border taxation and explores potential solutions to mitigate these challenges effectively. One of the primary concerns in cross-border taxation is the issue of base erosion and profit shifting (BEPS), where multinational enterprises exploit gaps and mismatches in tax rules to artificially shift profits to low-tax jurisdictions, thereby eroding the tax base of higher-tax jurisdictions. Such practices not only lead to revenue losses for governments but also create an uneven playing field for businesses. Furthermore, navigating the intricate web of international tax treaties and agreements poses significant hurdles for taxpayers and tax authorities alike. The lack of uniformity in tax regulations across jurisdictions often results in ambiguity and disputes regarding the allocation of taxing rights and the determination of taxable income. Addressing these challenges requires a comprehensive approach that incorporates both policy reforms and international cooperation. Implementing measures such as the OECD/G20 BEPS project, which aims to modernize international tax rules and combat tax avoidance strategies, is crucial. Additionally, enhancing transparency through initiatives like country-by-country reporting enables tax authorities to gain insights into the global operations of multinational corporations, thereby facilitating more effective enforcement of tax laws. Moreover, fostering collaboration among nations through information exchange agreements and multilateral frameworks enhances the effectiveness of tax enforcement efforts and reduces opportunities for tax evasion. Embracing digitalization and leveraging technology tools can also streamline tax compliance processes and enhance the efficiency of cross-border tax administration. The complexities of cross-border taxation in global finance necessitate proactive measures to address BEPS, enhance tax transparency, and promote international cooperation. By implementing comprehensive strategies that blend policy reforms with technological innovations, stakeholders can navigate the challenges posed by cross-border taxation while fostering a fair and conducive environment for sustainable economic growth. Keywords: Cross-Border, Tax, Environment, Sustainable, Economy, Review.

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Global Governance, Tax Treaties, and Credible Commitments

Cited by 5 publications

References 112 publications

Legal Frameworks and Tax Compliance in the Digital Economy: A Finance Perspective

Legal Frameworks and Tax Compliance in the Digital Economy: A Finance Perspective

Legal Frameworks and Tax Compliance in the Digital Economy: A Finance Perspective

Cross-Border Tax Challenges and Solutions in Global Finance

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