How has the globalisation of markets impacted international taxation?

The globalisation of markets has had a significant impact on international taxation across the world, including in Indiana. Globalisation has resulted in businesses being able to operate and trade in multiple countries, without necessarily needing to physically establish branches in each. This has led to a challenge for tax authorities, who are now faced with the task of taxing global businesses in a fair and equitable manner. To help address this challenge, governments in both developed and developing countries have implemented a range of taxation measures. This includes the introduction of double taxation agreements between countries, which help to ensure that businesses are not taxed twice on the same income. These agreements also help to prevent profit-shifting, which is the practice of artificially shifting profits from a high-tax jurisdiction to a low-tax jurisdiction, in order to pay lower taxes overall. Another international taxation measure that has been implemented in Indiana is the Base Erosion and Profit Sharing (BEPS) initiative, which is designed to combat base erosion and profit shifting in the global business environment. This initiative requires multinational companies to record and report information on their cross-border activities to help relevant tax authorities identify and protect taxable income. In conclusion, the globalisation of markets has had a major impact on international taxation, with governments having to implement a range of taxation measures to ensure that multinational businesses are taxed equitably and fairly across different countries. These measures have helped to create a fairer global tax system, while also providing a greater level of transparency in the international business environment.

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How has the globalisation of markets impacted international taxation?

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