Annual Survey of International & Comparative Law


Insop Pak


This paper begins with a description of globalization and analyzes its nature and effects on the financial environment. Implications of globalization for state sovereignty are also addressed. In particular, global challenges to national fiscal sovereignty are discussed. In this context, this writing clarifies the concept of tax jurisdiction and reviews problems with the national tax systems such as double taxation, and taxpayers' cross-border arbitrage which results from the increased mobility of capital associated with financial globalization. Furthermore, an emphasis has been given to discuss the pros and cons of tax competition and harmonization. More importantly, this article attempts to search for the measures to enhance global governance in the international tax regime. In this regard, an analysis of the network of tax treaties is provided. I then move on to review the role of the Organization for Economic Cooperation and Development (OECD) as a global tax network in international taxation. In this context, an emphasis is placed on the evaluation of global network governance conducted by independent decentralized government agencies in the international economy under international law. In addition, an argument about the creation of the International Tax Organization (ITO) is discussed. Finally, this paper concludes by seeking alternatives to enhance global tax governance through the coordination of a bilateral tax treaty network and a global tax network in international finance.