How has the globalisation of markets impacted international taxation?

Globalization has had a tremendous impact on international taxation. One of the most significant changes is the increased need for cooperation and coordination between countries on taxation matters. In the past, each country was essentially responsible for managing its own tax system, often with little interaction with other countries. However, with the increased globalization of markets, countries have needed to cooperate more closely on tax matters. This has resulted in the creation of multiple international treaties and agreements between countries in order to reduce double taxation and make it easier for companies to operate in different countries. Another major effect of globalization is the increased level of competition between countries to attract businesses and investors. To remain competitive, countries have been forced to reduce their corporate tax rates and offer more generous incentives to companies in an effort to attract more foreign investment. This has had a significant impact on international taxation, as this competition has led to a decrease in the overall tax rate for many countries. Finally, globalization has also had an impact on the ability of countries to fight international tax avoidance and tax evasion. With more money and assets flowing across international borders, it has become harder for countries to track and monitor the taxes that businesses and individuals owe. As such, governments have had to put in place stronger enforcement procedures and regulations in order to ensure that international taxes are paid on time and in full.

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How has the globalisation of markets impacted international taxation?

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