Tax Policy Challenges in the 21st Century

S. 582I. Introduction

Globalization is a trend visible in different spheres of the actions of countries, businesses and international organizations. In the tax field, issues such as tax evasion, tax avoidance, shifting of profits to low tax jurisdictions, creation of offshore companies, use of tax havens, harmful/unfair tax competition, aggressive tax planning by large companies, bank and tax secrecy, disclosure of certain financial and non-financial information, are examples of phenomena that require global action – global solutions and global tax standards. All of them become more important when viewed from the perspective of multinational enterprises (MNEs), their global presence on all continents and their inclination to use available (il)legal tools to lower their financial burden and pay less tax. Because of that, it is very important to provide transparency in the MNEs’ operations. In this paper the author will perform an analysis of the different actions undertaken on the international, regional and national level and try to make proposals to change the identified problems. Section 1 deals with general issues on MNEs and tax transparency. Section II. deals with the work of the Org...