International taxation

Abstract

The OECD has been involved in international tax governance since the mid-20th century, in the wake of the pioneering work of the League of Nations on international double taxation. Initially focused on developing a network of bilateral tax treaties via the OECD Model Tax Convention, the OECD has over the years upgraded its ambition and policy instrumentation, to cover other tax-related issues such as harmful tax competition, transfer pricing, cross-border tax avoidance and evasion, and, recently, the challenges arising from the digitalisation of the economy. Its structure, organisation and resources have positioned the OECD in a leading position in terms of capacity building and data provision in taxation, also because there is no global tax organisation. Today the OECD operates in concert with global efforts – the support of the G20 is a necessary condition for delivering the projects under way. Compared to the past, the tax discourse is also more political, concerns about who benefits from tax evasion and with what implications for delivering public goods are on the agenda of many governments and advocacy organisations. The implications of the OECD initiatives on developing countries have also raised critical issues.