Periodic Reporting for period 3 - GLOBTAXGOV (A New Model of Global Governance in International Tax Law Making)
Okres sprawozdawczy: 2021-02-01 do 2022-07-31
The BEPS Project aims to provide OECD-, G20 and non-OECD/non-G20 (including developing countries) with tools to tackle tax base erosion and profit shifting by introducing 15 Actions to deal with transfer pricing, hybrid mismatches, harmful tax regimes, tax treaty abuse, among others. In addition, the OECD has included 4 of the 15 Actions as Minimum Standards which are required to be implemented by countries that participate in the BEPS Inclusive Framework. Minimally, the standards that should be implemented are countering of harmful tax practices (Action 5), preventing of treaty abuse (Action 6), re-examining transfer pricing documentation including country by country reporting (Action 13), and enhancing resolution of disputes (Action 14). 141 jurisdictions (August 2022) including OECD, G20 and developing countries have committed to the implementation of these BEPS 4 Minimum Standards. The countries participating in the BEPS Inclusive Framework have a peer review schedule for the implementation of the BEPS 4 Minimum Standards, and if these Minimum Standards have not been implemented, the OECD will give a negative review which may also have consequences for the country. Due to the political support of the G20, the OECD has been empowered to develop common responses to international tax challenges reflected in the 15 Actions of the BEPS. Following these international tax develompents and with the objective of having an important role in internationl tax law making, the European Union has also introduced some of the BEPS Measures in the Anti-Tax Avoidance Directive 1 and 2 and the Directives on Administrative Cooperation (DAC 1 to DAC 6) and has started State Aid Investigations. In addition, the European Union in the ECOFIN Council (April 2018) has introduced the BEPS 4 Minimum Standards in the Standard of Good Governance in Tax Matters. This situation creates tensions between developed and developing countries, and between EU and non-EU (third) countries.
Against this backgroud, the GLOBTAXGOV project will have three research objectives (RO). RO 1 is to assess the feasibility of the current model of global tax governance taking into account the differences in tax systems and tax cultures and the different problems felt by developing and developed countries. To address this objective, this research will investigate the implementation of the four BEPS minimum standards in 8 of the 141 jurisdictions committed to the implementation of BEPS minimum standards. These jurisdictions are developed countries ( Mexico, the Netherlands, Spain, and Australia) and developing, BRICS and emerging countries (Colombia, Senegal, Nigeria, and India). RO2 is to assess in light of legitimacy, the conditions under which the OECD can set standards in the current model of global tax governance. This objective takes into account the different approaches to fairness from the perspective of developed countries (i.e. OECD countries) and from the perspective of emerging economies, BRICS and developing countries. RO3 is to investigate in this model of global tax governance where the EU stands? and under what conditions can the state aid investigations and the role of the EU in setting up the international standard of good governance and fair competition be legitimate with respect to EU and third (non-EU) countries? Due to COVID19, we have been granted an extension for additional 6 monhts (until 31 July 2023) including 6 months extension for PHDs 1 and 2 and PI. We have also reduced the number of countries researcher from 12 to 8.
Against this backgroud, the GLOBTAXGOV project will have three research objectives (RO). RO 1 is to assess the feasibility of the current model of global tax governance taking into account the differences in tax systems and tax cultures and the different problems felt by developing and developed countries. To address this objective, this research will investigate the implementation of the four BEPS minimum standards in 8 of the 141 jurisdictions committed to the implementation of BEPS minimum standards. These jurisdictions are developed countries ( Mexico, the Netherlands, Spain, and Australia) and developing, BRICS and emerging countries (Colombia, Senegal, Nigeria, and India). RO2 is to assess in light of legitimacy, the conditions under which the OECD can set standards in the current model of global tax governance. This objective takes into account the different approaches to fairness from the perspective of developed countries (i.e. OECD countries) and from the perspective of emerging economies, BRICS and developing countries. RO3 is to investigate in this model of global tax governance where the EU stands? and under what conditions can the state aid investigations and the role of the EU in setting up the international standard of good governance and fair competition be legitimate with respect to EU and third (non-EU) countries? Due to COVID19, we have been granted an extension for additional 6 monhts (until 31 July 2023) including 6 months extension for PHDs 1 and 2 and PI. We have also reduced the number of countries researcher from 12 to 8.
Third Financial Reporting Period 1 February 2021 to 31 July 2022
DISSEMINATION
• Disseminate work in blog GLOBTAXGOV, Twitter @Globtaxgov, LinkedIn, Facebook group, YouTube account.
• Blogposts on global tax governance published in the blog GLOBTAXGOV (87 blogposts and 14 for this period) at https://globtaxgov.weblog.leidenuniv.nl/
OUTPUT Available open access at https://globtaxgov.weblog.leidenuniv.nl/outputs/
PUBLICATIONS for this reporting period
PI: Irma Johanna Mosquera Valderrama: 4 articles (one with PhD 2), 6 book chapters (1 with PhD 1 and 1 with PhD 1 and PhD 2) and 1 edited book. Already written and pending publication: 1 article, 1 report, 1 book chapter and 1 edited special issue.
PhD 2 Frederik Heitmüller (as of 1-09-2018) with PI: 1 article (RO1); with PI and PhD1:1 book chapter. 1 report/toolkit (RO1);
PhD 1 Juliana Cubillos (as of 15-06-2019 replacing Adrian Grant see first financial reporting) 1 workshop report (RO1); with PI 1 book chapter (RO1); with PI and PhD 2: 1 book chapter, 1 report toolkit (RO1). 4
PRESENTATIONS Slides (open access)
PI: 95 in total and 33 for this reporting period (online/on site) presentations in more than 25 countries addressing BEPS and global tax governance.
PhD 1: 4 presentations, and 1 presentation (with PhD 2)
PhD 2:13 presentations, and 1 presentation (with PhD 1)
ORGANIZATION OF WORKSHOPS
23 in total and 10 for this reporting period with academia, /policy makers/international organizations/government and business representatives. Reports/slides/recordings available in the blog GLOBTAXGOV and in YouTube. All events are free of registration and since COVID19 in an online/hybride format.
DISSEMINATION
• Disseminate work in blog GLOBTAXGOV, Twitter @Globtaxgov, LinkedIn, Facebook group, YouTube account.
• Blogposts on global tax governance published in the blog GLOBTAXGOV (87 blogposts and 14 for this period) at https://globtaxgov.weblog.leidenuniv.nl/
OUTPUT Available open access at https://globtaxgov.weblog.leidenuniv.nl/outputs/
PUBLICATIONS for this reporting period
PI: Irma Johanna Mosquera Valderrama: 4 articles (one with PhD 2), 6 book chapters (1 with PhD 1 and 1 with PhD 1 and PhD 2) and 1 edited book. Already written and pending publication: 1 article, 1 report, 1 book chapter and 1 edited special issue.
PhD 2 Frederik Heitmüller (as of 1-09-2018) with PI: 1 article (RO1); with PI and PhD1:1 book chapter. 1 report/toolkit (RO1);
PhD 1 Juliana Cubillos (as of 15-06-2019 replacing Adrian Grant see first financial reporting) 1 workshop report (RO1); with PI 1 book chapter (RO1); with PI and PhD 2: 1 book chapter, 1 report toolkit (RO1). 4
PRESENTATIONS Slides (open access)
PI: 95 in total and 33 for this reporting period (online/on site) presentations in more than 25 countries addressing BEPS and global tax governance.
PhD 1: 4 presentations, and 1 presentation (with PhD 2)
PhD 2:13 presentations, and 1 presentation (with PhD 1)
ORGANIZATION OF WORKSHOPS
23 in total and 10 for this reporting period with academia, /policy makers/international organizations/government and business representatives. Reports/slides/recordings available in the blog GLOBTAXGOV and in YouTube. All events are free of registration and since COVID19 in an online/hybride format.
RELEVANT OUTPUT RESEARCH OBJECTIVE (RO)
RO1
In addition to research by PhD 1 and PhD 2 on the implementation of the BEPS 4 Minimum Standards (in progress) and publications:
- BEPS Action 6: Drafting (by PhD 1, PhD 2 and PI) in cooperation with the Inter-American Center of Tax Administrations (CIAT) of the Toolkit for the Design and Effective Implementation of Domestic and International General Anti-Avoidance Rules
- BEPS Action 13 workhshop co-organized with CORPTAX from Charles University in Prague on Country-by-country reporting: Assessment of tax avoidance and policy challenges and another one with the University of St. Gallen on Sustainability and Tax Reporting.
- Organization of the Global Tax Symposium (PhD Seminar and Conference). The Global Tax Symposium is a cooperation of 22 Universities around the world.
RO 2
In addition to publications, presentations:
- Organization of workshop series on June 2021 regarding the interactions between tax, trade and investment with policy makers, academia, business, civil society, think tanks, judges . This topic was chosen since the BEPS Project has been regarded by trade and investment as one of the examples to achieve global governance in other areas than taxation. Therefore, by interacting between experts in different fields, we aimed at creating a dialogue between policy makers in these areas and to address the shortcomings of global governance. Following these workshops series, we invited several scholars to contribute to a special issue at the Asia Pacific Law Review (pending publication open access)
- Invitation by the African Tax Administration Forum (ATAF) to co-organize a workshop series on global tax governance. In these workshops we (with PhD 2) gave presentations combined with ATAF representatives' presentations. This interaction allows the GLOBTAXGOV to reach out to tax administrations and policy makers in Africa which are also participating in the OECD/G20 discussions regarding the BEPS Project and new projects.
RO3
In addition to publications, presentations:
- In 2021 the PI was awarded an EU Jean Monnet Chair on EU Tax Governance (RO3) which also shows the potential to transform research into teaching.
RO1
In addition to research by PhD 1 and PhD 2 on the implementation of the BEPS 4 Minimum Standards (in progress) and publications:
- BEPS Action 6: Drafting (by PhD 1, PhD 2 and PI) in cooperation with the Inter-American Center of Tax Administrations (CIAT) of the Toolkit for the Design and Effective Implementation of Domestic and International General Anti-Avoidance Rules
- BEPS Action 13 workhshop co-organized with CORPTAX from Charles University in Prague on Country-by-country reporting: Assessment of tax avoidance and policy challenges and another one with the University of St. Gallen on Sustainability and Tax Reporting.
- Organization of the Global Tax Symposium (PhD Seminar and Conference). The Global Tax Symposium is a cooperation of 22 Universities around the world.
RO 2
In addition to publications, presentations:
- Organization of workshop series on June 2021 regarding the interactions between tax, trade and investment with policy makers, academia, business, civil society, think tanks, judges . This topic was chosen since the BEPS Project has been regarded by trade and investment as one of the examples to achieve global governance in other areas than taxation. Therefore, by interacting between experts in different fields, we aimed at creating a dialogue between policy makers in these areas and to address the shortcomings of global governance. Following these workshops series, we invited several scholars to contribute to a special issue at the Asia Pacific Law Review (pending publication open access)
- Invitation by the African Tax Administration Forum (ATAF) to co-organize a workshop series on global tax governance. In these workshops we (with PhD 2) gave presentations combined with ATAF representatives' presentations. This interaction allows the GLOBTAXGOV to reach out to tax administrations and policy makers in Africa which are also participating in the OECD/G20 discussions regarding the BEPS Project and new projects.
RO3
In addition to publications, presentations:
- In 2021 the PI was awarded an EU Jean Monnet Chair on EU Tax Governance (RO3) which also shows the potential to transform research into teaching.