CYIL vol. 14 (2023)

PAVLÍNA KRAUSOVÁ CYIL 14 (2023) The DTTs have also been occasionally criticized, for developing countries making concessions in tax treaties without a full awareness of their implications. Believing the provisions were standard due to their mutuality and disregarding an incomparable impact. 20 This is of course not a question of sovereignty per se, as international law does not protect states from entering into treaties that may not be fully beneficial in the future. But an argument of an “equal footing” especially during the phase of negotiations, appears repeatedly and constitutes an important element of current academic and political debates on international tax cooperation. 1.4 The New International Tax Order The international tax order has undergone a transformation in the last decade due to factors such as insufficient public revenues after the 2008 financial crisis, data leaks of offshore bank accounts, or press coverage of MNEs’ tax avoidance. This has led to moves towards greater cross-border information sharing and transparency, dismantling of tax havens, and moving from a bilateral to a multilateral tax coordination among countries. 21 The governments worry mostly about tax competition, tax evasion and avoidance, and the regime of the tax base. 22 Among successful initiatives solving some of those issues through multilateral cooperation has been the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS 23 (MLI) aimed to modify simultaneously bilateral tax treaties. The purpose was to facilitate changes in bilateral income tax treaties so that governments could adopt changes in the approximately 3,000 bilateral income tax treaties by a multilateral procedure. 24 Other initiatives include treaties and agreements on tax transparency and exchange of information or on mutual administrative assistance. 2. Role of International Organizations Over the past decade, the trend of international organizations acquiring greater powers has slowed down, with member states becoming less willing to accept binding rules and provide financial support. However, international organizations are not suffering from a general legitimacy crisis, as confidence in them remains relatively intact and often exceeds confidence in national governments. 25 In order to close gaps in governance, the states give international organizations greater power to regulate areas such as taxation. 26 The international organizations may have influence in various aspect of research and information, 20 RING, D. (2022). Democracy, Sovereignty and Tax Competition: The Role of Tax Sovereignty in Shaping Tax Cooperation. Florida tax review , 9 (5). https://doi.org/10.5744/ftr.2009.1053 p. 584. 21 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, p. 206. 22 KJOSEVA, E. N. (2020). The OECD Multilateral Instrument: New Momentum in the International Tax Law and Its Impact on the Macedonian Tax Law [Article]. Iustinianus Primus Law Review , 11 (1), 1–9. https://search. ebscohost.com/login.aspx?direct=true&db=lgs&AN=144758904&lang=cs&site=ehost-live p. 5. 23 Signatories and Parties to the MLI as of 1 June 2023 available at https://www.oecd.org/tax/treaties/beps-mli signatories-and-parties.pdf. 24 SPENCER, D. E. (2018). A New Reality. Int’l Fin. L. Rev. , 37 , 54. p. 56. 25 SCHOLTE, J. A., TALLBERG, J., BÄCKSTRAND, K., & SOMMERER, T. (2023). Academics Call for More Powers for International Organisations . Leiden University. Retrieved 22.5. from https://www.universiteitleiden. nl/en/news/2023/04/academics-call-for-more-powers-for-international-organisations. 26 TALLBERG, J., BÄCKSTRAND, K., SCHOLTE, J. A., & SOMMERER, T. (2023). SNS Democracy Council 2023. Global Governance – Fit for Purpose . SNS – the Center for Business and Policy Studies. p. 171.

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