Lorraine Eden

Three Lenses on Taxing Multinationals and International Tax

Introduction

Three lenses on taxing multinationals and international tax . Explore taxing multinational enterprises, international tax cooperation, and the UN's push for an equitable global tax system. Addresses profit shifting and sustainable development challenges.

Abstract

Taxing multinational enterprises (MNEs) remains a complex and contentious challenge in global governance. While international tax cooperation is widely endorsed as essential for addressing profit shifting, tax avoidance, and the financing of sustainable development, the existing OECD-led regime has often facilitated double non-taxation rather than preventing it. Recent efforts at the United Nations, particularly the initiative to establish a UN Framework Convention on International Tax Cooperation, mark a significant shift toward a more inclusive, equitable, and effective global tax system. This paper examines the historical evolution of international tax cooperation and analyzes the current push for a UN-led framework through three analytical lenses: wicked problems, prescriptive public finance, and international regimes and global governance. Drawing on these perspectives, the paper explores the challenges of reconciling diverse national interests, the importance of sovereignty, and the need for consensus-based decision-making. It concludes with policy recommendations for building a robust, inclusive, and sustainable international tax architecture that better serves both developed and developing countries in an era of economic globalization and digitalization.

Review

This paper tackles the highly pertinent and enduring challenge of taxing multinational enterprises, a subject of immense complexity and ongoing global debate. The abstract clearly articulates the central problem: despite calls for international cooperation, the existing OECD-led regime has proven ineffective, often leading to unintended "double non-taxation." The paper positions the recent initiative for a UN Framework Convention on International Tax Cooperation as a pivotal moment, signaling a crucial shift towards a potentially more inclusive and equitable global tax system. By examining the historical evolution and current dynamics of this critical issue, the study promises a timely and relevant contribution to understanding a key aspect of global governance and sustainable development financing. A significant strength of this work appears to be its analytical framework. The paper proposes to utilize three distinct lenses – wicked problems, prescriptive public finance, and international regimes and global governance – to dissect the complexities surrounding international tax cooperation. This multi-perspectival approach suggests a rigorous and nuanced examination of the challenges involved, such as reconciling diverse national interests, upholding sovereignty, and achieving consensus-based decision-making. By applying these theoretical tools, the paper is well-positioned to offer a comprehensive diagnostic of the current state of international taxation and the forces driving its potential transformation towards a UN-led model. Ultimately, the paper aims to move beyond analysis by offering concrete policy recommendations for a robust, inclusive, and sustainable international tax architecture. This practical orientation, coupled with its focus on serving both developed and developing countries in an increasingly digitalized global economy, highlights its potential real-world impact. By integrating historical context with contemporary developments and applying a sophisticated analytical framework, this paper is set to make a valuable contribution to the scholarly discourse on international political economy, public finance, and global governance, while also informing ongoing policy debates on reforming the global tax system.

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