Global Tax Politics

Tax PoliticsEconomic and financial globalization made it more difficult for national governments to tax wealthy citizens and multinational corporations, depriving them of essential fiscal resources that could be used for the expansion of the welfare state and the supply of other public goods.

Over the past 10 years, however, the world has witnessed a sea-change with regard to multilateral tax cooperation.

Pressing tax issues in a globalizing world economy, such the negative role of tax havens and bank secrecy in allowing wealthy individuals to evade taxes and the various ways through which multinational corporations avoid taxes by shifting profits from higher-tax jurisdictions to lower-tax-jurisdictions, seem to be seriously addressed for the first time.

This mainly occurred through the G20 and OECD, who established two new international regimes – the Common Reporting Standard (CRS), the Base Erosion and Profit Shifting (BEPS) initiative and the agenda for taxation of the digitalized economy – to deal with problems of international tax evasion by wealthy individuals and tax avoidance by multinational corporations.

The GIIS examines the political origins and consequences of these profound policy changes as well as their limitations, bringing together various strands in international political economy and focusing on the complex interplay between power, interests, ideas and institutions in global tax governance

Concretely, the GIIS focuses on the following research topics:

  • Great power politics in global tax governance
  • Rising powers and global tax governance
  • Origins and consequences of the G20/OECD tax agenda
  • Developing countries and global tax governance
  • The consequences of unilateralism in global tax governance