CYIL vol. 14 (2023)

CYIL 14 (2023) THE ROLE OF INTERNATIONAL ORGANIZATIONS IN ESTABLISHING THE GLOBAL… THE ROLE OF INTERNATIONAL ORGANIZATIONS IN ESTABLISHING THE GLOBAL MINIMUM TAX Pavlína Krausová Abstract : This article explores the role of international organizations in international tax cooperation and its implications on tax sovereignty of individual states. Specifically, it focuses on the efforts under the auspices of the OECD/G20 Inclusive Framework on BEPS and the proposal on global minimum tax rules affecting multinational corporations. Resumé : Tento článek se zabývá úlohou mezinárodních organizací v mezinárodní daňové spolupráci a jejími důsledky pro daňovou suverenitu jednotlivých států. Konkrétně se za měřuje na úsilí pod záštitou OECD/G20 Inkluzivního rámce BEPS a na návrh globálních minimálních daňových pravidel, která se týkají nadnárodních společností. Key Words : international taxation, tax sovereignty, Inclusive Framework, UN, global minimum tax About the Author : Mgr. Pavlína Krausová, MBA , is a full-time doctoral student at the Department of Public International Law, Faculty of Law of the Charles University. Her area of focus is International Economic Law and Dispute Resolution, with her dissertation topic being focused on Tax Law. In a law office, she specializes in Commercial and Financial Law. Additionally, she is a parliamentary assistant, and also a coach of the university teams to international moot court competitions. 1. International Tax Cooperation Traditionally, tax was an area of national legislation. However, the openness of the national economies has enabled shifting profits across different tax jurisdictions as corporations and individuals took advantage of mismatches and differences in tax regulatory frameworks. Suddenly, states lost domestic control and had to adjust the concept of traditional tax sovereignty. 1 The so called new international tax order has been on a rise after the 2008 financial crisis. Some of its elements are an increase of requirements of transparency, cooperation, and coordination among countries, but also an important role of international organizations that generate ideas, models, norms, or guidelines. 2 Development of an international tax system is on a rise and many debates are held as to the legitimacy of its core foundations. Recent development in the United Nations show a possible shift towards greater role and involvement of developing countries. This paper will address the concepts of tax sovereignty, introduce the most important bodies and organisations involved in the current international tax debate, and then focus specifically on the Two Pillar Solution and its implications for tax incentives and developing countries. Finally, it will address the current debate regarding the role of the UN, which is a subject of lively discussions.

1 KJOSEVA, E. N. (2021). Taxation in Era of Globalization and Digitalization: Issues and Challenges on National Tax Sovereignty. Iustinianus Primus L. Rev. , 12 , 1. pp. 2–4. 2 OEI, S.-Y. (2022). World Tax Policy in the World Tax Polity? An Event History Analysis of OECD/G20 BEPS Inclusive Framework Membership. Yale J. Int’l L. , 47 , 199. (Yale J. Int’l L.) pp. 200–201.

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