A Different Unified Approach to Global Tax Policy: Addressing the Challenges of Underdevelopment

31 Pages Posted: 6 Aug 2020 Last revised: 8 Apr 2021

See all articles by Tarcisio Diniz Magalhaes

Tarcisio Diniz Magalhaes

University of Antwerp Faculty of Law

Ivan Ozai

Osgoode Hall Law School, York University

Date Written: August 5, 2020

Abstract

Experts from the North have long tried to teach countries in the South how to tax. For decades, they assumed the main challenges were domestic and there was a right answer to be found somewhere in the developed world that could be replicated everywhere else. Only more recently have they dedicated more attention to the international realm, yet their solutions remain tied to technical rules designed by a few specialists, as exemplified by the OECD Secretariat’s “Unified Approach” for the taxation of the digital economy. From a critical and historical socio-legal perspective, this Article argues that such technocratic approaches are set to fail less-developed nations for as long as we continue to overlook the background causes of weak taxation at both the national and international levels. These involve difficulties in applying complex rule sets, but also the very way in which global tax policy is developed, who influences the process, and the resulting distributive consequences.

Keywords: Tax Policy; OECD; BEPS; Digital Economy; Developing Countries

JEL Classification: K34, O20, O40

Suggested Citation

Diniz Magalhaes, Tarcisio and Ozai, Ivan, A Different Unified Approach to Global Tax Policy: Addressing the Challenges of Underdevelopment (August 5, 2020). Nordic Journal of Law and Society, Vol. 4, no. 1 (2021), pp. 1-31, Available at SSRN: https://ssrn.com/abstract=3667717

Tarcisio Diniz Magalhaes

University of Antwerp Faculty of Law ( email )

Venusstraat 23
Antwerp, 2000
Belgium

HOME PAGE: http://https://www.uantwerpen.be/en/staff/tarcisio-diniz-magalhaes_21647/

Ivan Ozai (Contact Author)

Osgoode Hall Law School, York University ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

HOME PAGE: http://www.osgoode.yorku.ca/faculty-and-staff/ozai-ivan/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
305
Abstract Views
823
rank
127,824
PlumX Metrics