The new international tax regime: analysis from a power-basis perspective

Scholars of international relations have not cultivated the groundwork of international taxation. However, the Organization for Economic Cooperation and Development's Base Erosion and Profit Shifting (BEPS) Project, Post-BEPS, and the Common Reporting Standard system, have attracted political attention on an international level. The purpose of this paper is to explain the recently formed and still being formed international tax regime by applying international regime theory from a power-based perspective. This study addresses the regime in two aspects: tax rulemaking and tax administration. The author uses qualitative discussion, breaking down the recent international tax regime issues for each sub-regime. Through the discussion, this research implies that major economic powers, pressures of fear of being labeled uncooperative, the force of theoretically grounded idea regarding a fundamental international tax principle, and the desperate need for tax authorities to ensure taxpayer and money flow transparency, are assisting the formulation of the new international tax regime.