Tax Policy Challenges in the 21st Century

S. 424I. Introduction

In order to realize why it is so important for governments and international organizations to improve tax transparency worldwide it is important to understand that tax transparency is not the goal. Tax transparency is just one of the tools that the international community uses in order to achieve the main goal, which is to fight against tax evasion and tax avoidance.

On the one hand, is the OECD as the organization that has assumed leadership in the area of tax transparency. From the creation of the Global Forum on Tax Transparency and Exchange of Information, to the launch of the Action Plan on Base Erosion and Profit Shifting, the work of the OECD towards creating mechanisms ensuring more transparency has been remarkable. The progress of the OECD’s strategies is periodically reported to G20 members. The International Monetary Fund (IMF) and the World Bank’s current efforts regarding tax transparency is also in accordance with the OECD initiatives. Correspondingly, the European Commission has also taken steps in order to address tax evasion and tax avoidance.

On the other hand, we have tax secrecy as an historical taxpayer right. In most countries some kind of protect...