Global Tax

Why Collaborate Via International Organisations?

Discussions about the effectiveness and fairness of the international tax system, and about the role of international organisations, have been dominating policy conversations and the tax press for some time now. Understanding the role of an international organisation such as the OECD in shaping international tax policy begins with the drivers of cooperation in tax matters. As previously observed,[1] the right to tax is fundamental to sovereignty and is jealously guarded by national governments. Countries agree to collaborate on international tax rules and standards when collective action is necessary to secure or facilitate domestic policy objectives, or when the absence of coordination frustrates domestic objectives. The importance of collaboration amongst countries on international tax becomes greater as cross-border activities accelerate. The growing footprint of multinational enterprises and the expanding mobility of labour, capital,…

The human right to development encompasses the right of peoples to self-determination and full sovereignty over their natural wealth and resources. Central to this declaration is the ideal that every nation should have the autonomy to design policies that foster economic growth and social progress. Underpinning this principle is taxation and its profound influence on economic development.

The right to development empowers countries to control their own economic, social, cultural and political progress. This includes setting national priorities and policies without undue influence. In a global economy, this right requires equal participation in international systems: fair access to global markets, control over domestic resources, and a voice in global governance. Key principles include equality, citizen participation, international cooperation, and sustainable practices. For developing nations, aligning with these principles is critical for economic advancement on the regional and globa…