Inclusive Global Tax Governance in the Post-BEPS Era

This book puts forward recommendations for an improved global tax governance model that is fit to achieve an effective and legitimate international tax regime.

Why this book?

After the 2008 global financial crisis, the international tax policy landscape drastically changed. The OECD was able to exploit the political pressure on the G20 to develop a timely response to the crisis and, together, these organizations took the lead in the much-needed income tax reform process that is still ongoing. Income tax rules are not only under great pressure internationally because big multinationals and rich individuals are able to avoid and evade paying taxes, but also because developing countries did not have a voice in the establishment of international tax norms and rules. Accordingly, the effectiveness and legitimacy of the international tax regime can be questioned. Inclusive Global Tax Governance in the Post-BEPS Era addresses these issues by answering the question: Which institutional changes should be made to global tax governance to achieve an effective and legitimate international tax regime?

In order to answer this research question, Inclusive Global Tax Governance in the Post-BEPS Era adopts a two-step approach. As a first step, the effectiveness and legitimacy of the international tax regime are evaluated in order to determine which changes to international tax relations are necessary to make the international tax regime more effective and legitimate. As a second step, the current global tax governance model is evaluated by analysing the institutional arrangements of the European Union, G20, OECD, United Nations and International Monetary Fund, and by carrying out a case study into the BEPS reform process. The findings of these two steps are brought together to put forward recommendations for an improved global tax governance model that is fit to achieve an effective and legitimate international tax regime.

Inclusive Global Tax Governance in the Post-BEPS Era takes an interdisciplinary approach, connecting the fields of international tax law and international relations. Not only are concepts from international relations, such as sovereignty and the international regime, applied to international taxation, but theories of international relations, such as neoliberal institutionalism and constructivism, are also applied to understand international income tax relations. This is done in an accessible way to make sure that persons not trained in political science are able to understand them.