Limits to Globalisation: Some Implications for Taxation, Tax Policy, and the Developing World

Abstract

Globalisation is a phenomenon that is said to have radically changed the international economy. It is said to have radically limited the power of national governments, particular in the field of taxation, in a world of highly mobile capital and flexible transnational corporations. To explore the extent of the effects of globalisation on taxation, this article discusses some ideas about how we should look at international tax policy in the face of the realities of globalisation, particularly in a world that includes developing countries, by considering the differences between different discourses on taxation, such as the economic, the legal, and the policy discourses. The policy discourse can offer new perspectives on the old question of the choice between source and residence taxation, makes it possible to understand them in terms of tax fairness criteria, and gives rise to a new criterion: the participation principle. Not only does the participation principle provide interesting approaches to some cases of concern to developing countries that have traditionally been viewed as source taxes, but the rise of digital goods do not simply shift the location of taxed activities. They can also offer creative opportunities for the developing world.

The Impact of Globalization and International Tax Competition on Tax Policies

“…Unlike FDI in Ukraine, in the dynamics of FDI from Ukraine until 2012, there are no clear trends: they are falling (2006, 2009 and 2011), then they grow to over 1 billion dollars. USA (2008 and2012). Overall, their average annual growth in 2004-2012 was $ 458.3 million.…”

“…The aim of the article is to determine to what extent the strengthening of the transparency of the Ukrainian economy and its incorporation in international tax competition affects the tax policy of the country and the peculiarities of its tax system. The achievement of this aim involves a delineation of changes in national tax policies that occur in response to the migration of mobile factors of production (in other words, under the influence of "true tax competition" as defined by Roxan (2012) and those caused by the influence of internal factors -economic, political, social.…”

Uloga nacionalnih socijalnih država u očuvanju i zaštiti socijalnih vrijednosti u kontekstu neoliberalnog globalnog poretka

“…U demokratskim državama, takva ograničenja pojavljuju se ujedno i kao ograničenja demokratskog odlučivanja. 81 Evidentno je kako veća povezanost i međuovisnost ima značajan utjecaj na porezne sustave te porezna baza poreza na dohodak i bogatstvo postaje geografski mobilnija i, samim time, osjetljivija na razlike u njihovom poreznom tretmanu u različitim državama. Istovremeno je otežano utvrđivanje porezne obveze i ubiranje poreza na aktivnosti koje se odvijaju u drugim državama, tj.…”

Myths and numbers on whistleblower rewards

“…Market integration and new communication technologies have allowed for worldwide instantaneous financial transactions, making financial capital – both legal and illegal – highly mobile. This has considerably reduced the ability of governments and regulators to enforce rules, a phenomenon particularly evident in the case of tax evasion (Christensen & Kapoor 2004; Roxan 2012) and money laundering (Radu 2016; Nyreröd & Spagnolo 2018). When effective, whistleblower reward programs can be an important tool for resource‐constrained regulators to obtain crucial information in a cost‐effective manner and thereby limit this growing imbalance of power.…”