How has the globalisation of markets impacted international taxation?

The globalisation of markets has had a major impact on international taxation. Globalisation is when markets become increasingly interconnected and borderless, allowing for goods and services to be exchanged across countries and continents. This has led to an increase in cross-border trade, investment, and financial activities, creating a need for global taxation rules. The globalisation of markets has increased the complexity of international taxation, as countries must not only consider their own domestic laws but also those of other countries. This has resulted in the need for international tax agreements between countries to ensure businesses and citizens are taxed in a fair and equitable manner. This has been further complicated by the fact that countries have different tax systems and rules, creating potential loopholes and opportunities for businesses to take advantage of. The globalisation of markets has also created a greater need for transparency in international taxation, as countries and companies must ensure they are compliant with relevant laws and regulations. This has led to the development of international standards on taxation, such as the OECD Model Tax Convention, which provides guidance on how to structure international taxation. In summary, the globalisation of markets has had a major impact on international taxation. It has increased the complexity of international taxation, created a need for agreements between countries, and created a greater need for transparency.

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How has the globalisation of markets impacted international taxation?

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