A Time to Institutionalize the International Tax Regime

The paper proposes replacing the existing and outdated decentralized international tax system with a centralized tax authority that would include four branches: a hierarchic judiciary branch that would replace/subject thousands of domestic tax tribunals, a legislative branch that would replace the existing inclusive Organization for Economic Cooperation and Development (OECD) forum that would be more balanced and as such be able to continue developing the international tax policy in the coming challenges that the Twenty-first century will bring, an executive branch that would be responsible for issuing multilateral letter ruling and guidance of how to implement the international principles and norms, assist poor countries whose costs in implementing beneficial practices are high and offer sanctions for countries that secretly deviate from the general principles and foster harmful tax principles. Furthermore, we propose to establish an audit branch that would supervise the compliance of the different countries. The article therefore blesses the recent multilateral cooperation of approximately 140 countries and suggests the time has come to institutionalize the international tax order and centralize it to better face the coming challenges that the technological breakthroughs would bring. © 2024 Kluwer Law International BV, The Netherlands.