The effects of globalization on international tax law

From the past to the present, two main problems have appeared in international taxation: "juridical double taxation" and "tax evasion and avoidance". After World War I, efforts of the International Chamber of Commerce and the League of Nations to solve double taxation were instrumental in creating the international taxation regime and establishing international tax law. The main objective of international tax law between the 1920s and 1980s was to solve juridical double taxation. Thanks to the bilateral tax treaties based on the model tax treaties prepared by the OECD and the UN and the unilateral measures such as foreign tax credits, the problem of double taxation has mainly been resolved. Moreover, the acceleration of globalization since the 1980s has given taxpayers and capital extraordinary mobility. As a result, the increase in tax havens and offshore financial centers caused the intensification of harmful tax competition and the erosion of countries' tax revenues. Because of these developments, the OECD has altered its focus on international taxation from double taxation to international tax evasion and avoidance. Once it became clear that bilateral tax treaties could not effectively combat international tax evasion and avoidance, the OECD launched initiatives for the multilateralization of international tax law. However, tools such as the BEPS Action Plan, the CRS and AEOI global standard, and the MLI prepared in this regard have not yet reached the desired success. This study aims to explore the transformation of the objectives and instruments of international tax law in the process of globalization, assess the effectiveness of these tools in solving global taxation issues, and suggest solutions in this direction. In light of the assessments, it is thought that the chronic problems arising from the structure of the international system cause the failure of the solution of international tax evasion and avoidance. In this context, many countries with harmful tax practices are members of the OECD, and the manipulation of the international tax policies by the United States for its benefit prevents the international tax system from being on a level playing field. Keywords: Trade Liberalization, Globalization, Tax Treaties, Double Taxation, Harmful Tax Competition, Tax Havens, Multilateralization