How has the globalisation of markets impacted international tax laws?
The globalisation of markets has had a huge impact on international tax laws. Globalisation is the process by which markets have become more interconnected and large transnational companies have emerged. Companies have become more mobile, shifting production and profits to different locations and reducing taxes. As a result, governments have had to respond by creating new international tax laws to capture the tax revenue while avoiding double taxation of companies. The Organisation for Economic Co-operation and Development (OECD) has played a major role in promoting the globalisation of markets and creating international tax laws, such as the Base Erosion and Profit Shifting (BEPS) project. This requires companies to pay taxes in the countries in which they operate. The aim of the project is to ensure that countries can still collect taxes on profits generated from global operations. In New York, the Department of Taxation and Finance has also been involved in the globalisation of markets, promoting international tax agreements to ensure companies pay their fair share of taxes. This includes new regulations on digital services and revenue, as well as incentives for companies to do business in New York. Overall, the globalisation of markets has led to major changes in international tax laws, with governments taking a more active role in ensuring companies pay their fair share of taxes. Companies now have to pay attention to their global operations to avoid facing additional taxes, while countries have to ensure that their tax regulations keep up with the pace of globalisation.
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