A Global Tax Body on the Horizon
Following the shocking revelations regarding secret tax-related information of thousands of people and firms worldwide by a Panama-based law firm, which has been labeled as Panama Papers afterwards, news indicating the intention of establishment of a global tax body to halt or at least mitigate the widespread use and exploitation of tax havens by tax evaders emerged in major media outlets.
The prospective global tax body is planned to be formed with the joint efforts and coordination of international organizations such as IMF, UN, World Bank and OECD to develop and if possible effectively enforce measures, standards and instruments for the taxation of multinational corporations on a global level.
The planned move will not only provide a ‘semi-regulator’ in global tax affairs, but also will enable individual countries to cope with the issue of tax base erosion within their national tax jurisdictions.
Although the intention to establish a global tax body by those international organizations willing to join forces in this regard predates the release of the so-called Panama Papers which exposed the fragility of the global tax architecture, dissemination of financial and tax-related secrets of countless number of real persons and legal entities has added urgency to the need to take some global steps in this direction.