How has the globalisation of markets impacted international taxation?

In recent decades, globalisation has impacted international taxation in a variety of ways. Globalisation has made it easier for businesses to operate in multiple countries, and this requires careful planning to account for the various tax systems that exist in different countries. Furthermore, globalisation has created an increasingly mobile workforce, which can create complex tax issues. For example, a company may need to consider applicable income tax rates for its employees who are working in different countries. On a larger scale, globalisation has led to increased competition between countries, as nations seek to attract businesses by offering more favourable tax rates. This has resulted in a system of international tax competition, where countries compete to provide the most attractive tax incentives. Globalisation has also created international tax avoidance schemes, where companies divert profits from higher tax jurisdictions to lower tax jurisdictions. This can create problems for governments, as it decreases their tax revenues and can lead to unfair competition between companies. Overall, globalisation has had a major impact on international taxation. Nations must carefully consider their tax systems in order to remain competitive, while also attempting to reduce potential tax avoidance schemes. Governments must also ensure that their tax systems are fair and equitable, or they may risk losing businesses to other countries.

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