Multilateral Mechanisms for Eliminating the Global Phenomena of Double Non-Taxation / Multilateralni mehanizmi za eliminaciju globalnog fenomena dvostrukog neoporezivanja

Abstract

Internationalization of administrative cooperation of tax administrations is an adequate response to the growing internationalization of taxpayers’ business and the emergence of new financial instruments. The emergence of cross-border and international tax frauds in addition to threatening the budgets of states, it also undermines fairness of taxation, since regular taxpayers pay more tax than they should, and threatens the efficiency of capital allocation and equal competition in the market. Exchange of information on taxpayers and transactions within multilateral agreements allows states to assess properly tax obligations in the field of direct taxes but also to combat tax evasion and tax fraud and eliminate double non-taxation at the global level. The adoption of a harmonized legal framework for cooperation between tax administrations is the winning of new forces in the world that are committed to maximum transparency in taxation and finances in global business. Bearing in mind the commitment of B&H for European integrations the operational model of administrative cooperation of tax administrations in B&H should be based on mechanisms, standards and best practices of the EU. Such approach would not only enable the fulfillment of obligations to the IMF but it would also represent an appropriate step towards integrating B&H into the system of administrative cooperation of tax administrations of the EU.