How do governments track and enforce international taxation?

Governments track and enforce international taxation through a number of different methods. One of the most common is through the Automatic Exchange of Information (AEOI) between countries. Through this, countries exchange financial information on their own citizens and residents to ensure they are paying the proper taxes. Another way governments track and enforce international taxation is through the creation of tax treaties between countries. These treaties set clear and binding rules for taxation between two countries. In many cases, they set specific rules for collecting tax from residents and citizens of both countries. In addition, governments often rely on third-party data providers to track and enforce international taxation. These companies collect and analyze data from a variety of sources, such as banks, credit card companies, and other financial institutions. This data can then be used to ensure that citizens are paying the correct taxes. Finally, governments may also employ audit teams to monitor international taxation. These teams are tasked with ensuring that companies and individuals are complying with the relevant tax laws. The teams will investigate financial records and documents to make sure correct taxes are being paid. In summary, governments track and enforce international taxation using a variety of methods, such as AEOI, tax treaties, third-party data providers, and audit teams. These methods are used to make sure that citizens and companies are paying the proper taxes.

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How do governments track and enforce international taxation?

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