Justice, Equality and Tax Law

S. 3841. Introduction

Undoubtedly, the effect of globalisation, accentuated in technologies, telecommunications and transportation, has facilitated the free movement of capital, people, goods and services, favouring economic development worldwide and promoting an interaction in the markets as never before.

Economies have not only benefited from this growth, job creation and innovation promoted by globalization but, at the same time, a change in the business paradigm has been observed, giving way to new business models based on matrix management at regional or global level, where companies locate their production activities in geographic areas diametrically distant from their end customers.

However, this progress has been undermined by a more recent damaging phenomenon called “aggressive tax planning” (“ATP”), where multinational companies and wealthy individuals working with highly qualified advisors identify and exploit loopholes in international tax rules, directly impacting the ability of countries’ tax authorities to collect tax revenue and ensure compliance.

In light of these practices, since the 1990s, OECD member countries and other states have played a leading role in international d...