This chapter addresses the current developments in the taxation of the digital economy including the current unilateral, multilateral, and EU proposals including objectives, challenges, and... Show moreThis chapter addresses the current developments in the taxation of the digital economy including the current unilateral, multilateral, and EU proposals including objectives, challenges, and problems arising when implementing these proposals. The chapter also provides some elements of analysis regarding the evolution from e-commerce to the digital economy, as well as addresses the concerns regarding the requirement of local presence that may constitute a barrier to trade and investment. The diversity of the proposals reveals that there is no clarity on the best way to deal with highly digitalised business, with the multilateral approaches facing similar scrutiny, especially by developing countries. Therefore, as in trade and investment, multilateral approaches will need to do more to gain legitimacy vis-à-vis developing countries. The chapter concludes with some recommendations regarding the steps that can be taken to address this topic by governments, as well as policymakers at the national, EU, and international levels. Show less
This chapter examines global tax governance. By assuming that the term global tax governance is used to impose outcomes on people, the question that should be asked would be, if this is true, and... Show moreThis chapter examines global tax governance. By assuming that the term global tax governance is used to impose outcomes on people, the question that should be asked would be, if this is true, and countries still follow these outcomes by the Organization for Economic Development and Co-operation (OECD), under what conditions can the model of global tax governance be feasible and legitimate for both developed and developing countries? The chapter begins by looking at the recent international tax standards, mainly exchange of information and BEPS as developed by the OECD with the political mandate of the G20. It then addresses the use of soft law vs. hard law to introduce international tax standards, before considering the role of developing countries in the BEPS Inclusive Framework and the peer review of the BEPS Minimum Standards. Finally, the chapter studies the validity of the outcome of these international tax standards and discusses the role of the actors in global tax governance. Show less
Het maken van internationale belastingregels is in het verleden bediscussieerd in het kader van debeginselen voor de verdeling van de heffingsrechten tussen ontwikkelde en ontwikkelingslanden.... Show moreHet maken van internationale belastingregels is in het verleden bediscussieerd in het kader van debeginselen voor de verdeling van de heffingsrechten tussen ontwikkelde en ontwikkelingslanden. Sindsde wereldwijde financiële crisis in 2007-2008 is de discussie veranderd. De focus ligt bij het maken vaninternationale belastingregels thans meer op internationale samenwerking en op het zoeken vanconsensus tussen ontwikkelde landen en ontwikkelingslanden. Echter, er zijn tekortkomingen in dezesamenwerking die gevolgen hebben voor de legitimiteit van de initiatieven, aangezienontwikkelingslanden onvoldoende zijn vertegenwoordigd in de besluitvorming over internationalebelastingregels.Deze bijdrage bespreekt deze tekortkomingen vanuit het perspectief van “verschuivendemachtsverhoudingen in de fiscaliteit” en de rol van ontwikkelde landen, ontwikkelingslanden en ookinternationale organisaties, zoals de OESO, en politieke fora, zoals de G20. De belangrijkste vraag is indezen wat ‘consensus’ betekent voor de legitimiteit, en goed bestuur van landen, internationale organisaties en politieke fora in het maken van internationale belastingregels? Show less
This contribution addresses the current developments in the taxation of the digital economy including the current unilateral, multilateral, and EU proposals including objectives, challenges, and... Show moreThis contribution addresses the current developments in the taxation of the digital economy including the current unilateral, multilateral, and EU proposals including objectives, challenges, and problems arising when implementing these proposals. This contribution also provides some elements of analysis regarding the evolution from e-commerce to the digital economy, as well as addresses the concerns regarding the requirement of local presence that may constitute a barrier to trade and investment. The diversity of the proposals reveals that there is no clarity on the best way to deal with highly digitalised business, with the multilateral approaches facing similar scrutiny especially by developing countries. Therefore, as in trade and investment, multilateral approaches will need to do more to gain legitimacy vis-à-vis developing countries. This contribution concludes with some recommendations regarding the steps that can be taken to address this topic by governments, as well as policymakers at the national, EU, and international levels. Show less
The overall aim of this chapter is to address the challenges that Asia and Europe face in digital connectivity in the field of taxation and to facilitate the exchange of best practices in the... Show moreThe overall aim of this chapter is to address the challenges that Asia and Europe face in digital connectivity in the field of taxation and to facilitate the exchange of best practices in the framework of Asia–Europe Meeting (ASEM) connectivity and cooperation. Show less
Since the 2008 financial crisis, multilateral cooperation in international tax law has developed at a fast pace. Nowadays, OECD and non-OECD countries have agreed to introduce international tax... Show moreSince the 2008 financial crisis, multilateral cooperation in international tax law has developed at a fast pace. Nowadays, OECD and non-OECD countries have agreed to introduce international tax standards to tackle tax evasion, harmful tax competition, and aggressive tax planning. This chapter will address these standards with a focus on the interaction between different international, and supranational (mainly EU) organizations in the process.The first part of the chapter will describe the environment in which international taxation has evolved and explain its foundations. The second part will address multilateral cooperation in tax matters among countries and the role adopted by international organizations in the development of common tax standards. The third part of this chapter will address multilateral tax cooperation at the European Union (EU) level and explain how the EU adopts tax standards to create general principles of conduct for tax matters. The fourth part offers some critical comments regarding the current system of multilateral cooperation as well as some ideas about the future perspectives for multilateral tax cooperation. Finally, this chapter will provide some conclusions. Show less
The first aim of this chapter is to compare the tax incentives for developing countries with a case study of two countries: Singapore and the Philippines. Following this comparison, the second aim... Show moreThe first aim of this chapter is to compare the tax incentives for developing countries with a case study of two countries: Singapore and the Philippines. Following this comparison, the second aim of this chapter is toevaluate the tax incentives granted in Singapore and the Philippines considering a new proposed evaluative framework for tax incentives in light of the Sustainable Development Goals (SDGs). Show less
Chapter 3 examines the decisions that inform the BRI’s institution building.It explores the tension between strategic and effficiency-oriented concerns, tracing these tensions across three issue... Show moreChapter 3 examines the decisions that inform the BRI’s institution building.It explores the tension between strategic and effficiency-oriented concerns, tracing these tensions across three issue areas: tax, trade, and development finance. The chapter shows that, in dealing with challenges, the Chinese government lacks an integral governance framework that systemically coordinates all relevant institutions. Instead, it takes varied institutional approaches to overseeing BRI projects, ranging from bilateral trade agreements to multilateral fijinancial institutions. This raises the question of what is driving China’s development of agreements and institutions for the BRI. The chapter argues that China’s development of BRI tax initiatives is mostly motivated by efficiency drivers, its trade agreements with key BRI partners by strategic drivers, and its efforts to establish multilateral financial institutions by both drivers. Show less
The main question addressed in this book chapter is: Are the OECD transparency and BEPS Framework the right framework for a global and sustainable tax governance that benefits not only OECD and... Show moreThe main question addressed in this book chapter is: Are the OECD transparency and BEPS Framework the right framework for a global and sustainable tax governance that benefits not only OECD and G20countries but also non-OECD and non-G20 countries, including developing countries? In order to answer this question, this chapter will provide an analysis of sustainable tax governance taking into account the sustainable development goals (SDGs) that the global tax initiatives aim to address and the mechanisms to achieve these goals. Show less
The aim of this chapter is twofold. The first aim is to provide an overview of tax incentives in developing countries to attract foreign direct investment (FDI) and the challenges for developing... Show moreThe aim of this chapter is twofold. The first aim is to provide an overview of tax incentives in developing countries to attract foreign direct investment (FDI) and the challenges for developing countries following the introduction of the OECD-G20 project to tackle base erosion and profit shifting (BEPS) by multinationals. The use of tax incentives has been discussed extensively by scholars and international organizations with different views on the usefulness of tax incentives to promote economic growth and to attract FDI. This chapter argues that tax incentives in developing countries are needed to contribute to development of underdeveloped geographical areas and specific economic sectors or industries. This chapter also argues that developing countries should have a framework to evaluate the usefulness of tax incentives in light of the Sustainable Development Goals (SDGs). This framework should be designed by each country and, if possible, taking into account the practices of other countries in the region so that countries can also exchange best practices. Therefore, the second aim of this chapter is to propose this evaluative framework. Show less
The approach of the Netherlands to tackling tax evasion and tax avoidance has changed over the course of the years 2015 to 2018. These changes are to a great extent the result of the priority of... Show moreThe approach of the Netherlands to tackling tax evasion and tax avoidance has changed over the course of the years 2015 to 2018. These changes are to a great extent the result of the priority of the Dutch government to ensure that “the Netherlands’ image as a country that makes it easy for multinationals to avoid taxation”is overturned by appropriate measures. As a member of the OECD, the Netherlands has participated in the design of the content of the BEPS Actions and in the BEPS Inclusive Framework. In general, the Netherlands has adopted all BEPS Actions and it has committed to the BEPS Multilateral Instrument for almost all its tax treaty network and with very few reservations. More recently, in February 2018, the State Secretary of Finance published two Policy Letters, one to introduce the Tax Policy Agenda and the other to introduce measures to tackle tax avoidance and tax evasion. The Dutch government has proposed in the Tax Policy Agenda several measures to counteract tax avoidance including the adoption of the EU Anti-Avoidance Tax Directives (ATAD 1 and ATAD 2) with some stricter requirements. If the measure relating to ATAD 1 is approved by the Dutch Parliament, the result will be a stricter rule than the minimum standard of ATAD 1. In order to address the needs of investors, the Netherlands is also proposing favourable rules such as the elimination of the Dutch dividend withholding tax and reduction of the corporate income tax rate. As of July 2018, these measures are still under discussion. Show less
