1st Edition
Global Corporate Tax Governance Crisis, Consensus, and Revolution
List of Figures
List of Tables
Acknowledgments
Commonly Used Abbreviations
Introduction
Overview of the Global Tax Agreement
Literature Review
Secular Trends: Globalization and Digitalization
Shocks
Capabilities-Interests
Political Preferences
History and Institutions
Ideas and Transnational Networks
Research Question and Methodology
Dynamic Model of Global Corporate Tax Governance
Findings and Thesis
Original Contribution
Plan of the Book
Bibliography
Chapter 1: The GCTR, Theories, and the Proposed Dynamic Model
Tax Sovereignty and Corporate Income Taxation
The “International” Tax Regime
Underlying Principles
The Trilemma of Global Tax Policy Goals
Pertinent Theories
Structural Realism and Game Theory
Liberal Institutionalism: Domestic Determinants of International Corporate Tax Law and Policy
Constructivism: Epistemic Communities and the Structural Power of Neoliberal Economic Thought
Shock-Activated Vulnerability and Global Economic Governance
The Dynamic Model of Global Corporate Tax Governance
Phase One - Shock-induced International Political Intervention and Delegation to Technical Experts
Phase Two - Normative Development by the TTPC
Phase Three - Strategic Bargaining and Mutual Concessions
Phase Four - Diffusion, Domestic Implementation, and Enforcement
Bibliography
Chapter 2: The Creation of the “International” Tax Regime, 1920-1963
The Establishment of the “International” Tax Regime at the League of Nations, 1920-1939
The 1923 Economists’ Report: Origins of the Doctrine of “Economic Allegiance” and Methods of Addressing Double Taxation
The 1925 Technical Experts: The Challenge of Regulatory Diversity and the Principle of Fiscal Domicile
The 1927 Technical Experts
The 1928 Technical Experts
Post-1929 Developments at the League of Nations
The Modernization of the International Corporate Tax Regime under the Organisation for Economic Co-operation and Development’s Auspices (1954-1963)
Fiscal Domicile and Permanent Establishment
Business Profits
Dividends, Interest, and Royalties
Methods for the Avoidance of Double Taxation
Mutual Agreement Procedure and Automatic Exchange of Information
Publication of the 1963 Draft Model Convention
Conclusion: Application of the Dynamic Model of Global Corporate Tax Governance (1920-1963)
Bibliography
Chapter 3: The Tax Challenges of Globalization and the Changing Digital Economy, 1963-2008
Changes to the OECD Model Convention and Commentaries, 1963-2008
Assumptions Underpinning the GCTR
Globalization and Tax Base Erosion
Digitalization and Tax Base “Cyberization”
The North-South Dimensions of Global Tax Politics
Conclusion
Bibliography
Chapter 4: The Evolution of the GCTR, 2008-2021
Exogenous Shock: The Global Financial Crisis (2008)
Tax Transparency and the Automatic Exchange of Information Standard (2008 – 2012)
Analysis of G-20 Member Compliance on Tax Transparency
Conclusion
BEPS 1.0 (2012 – 2018)
Analysis of G-20 Member Compliance on BEPS 1.0
Conclusion
BEPS 2.0 and Tax Unilateralism (2018 – 2020)
Conclusion
The Two-Pillar Blueprint and Global Corporate Tax Deal (2020-2021)
Critical Evaluation of the Global Corporate Tax Deal and the G20-OECD Collaboration on BEPS 1.0 and BEPS 2.0
Conclusion
Evolution of the GCTR, 2008 – 2021
Conclusion
Bibliography
Chapter 5: Causes of Change in the GCTR, 2008 – 2021
Shock-induced International Political Intervention and Delegation to Technical Experts
Normative Development by the TTPC
Strategic Bargaining and Mutual Concessions
Diffusion, Domestic Implementation, and Enforcement
Conclusion
Bibliography
Conclusion
Summary of Core Empirical Findings
Core Argument
Pathways for Future Scholarship
Global Policy Recommendations
Bibliography
Appendices
Appendix A: Double Tax Agreements (1843-1923)
Appendix B: Membership of National Delegations to Technical Committees
Appendix C: Text of Draft Convention No. 1a of the 1928 Draft Model Treaties
Appendix D: Text of Draft Convention No. 1b of the 1928 Draft Model Treaties
Appendix E: Text of Draft Convention No. 1c of the 1928 Draft Model Treaties
Appendix F: Draft Convention Adopted for the Allocation of Business Income Between States for the Purposes of Taxation
Appendix G: Excerpts from the Draft OECD Model Double Taxation Convention on Income and Capital, 1963
Index
Biography
Michael F. Motala, JD, PhD, is an assistant professor of Law and Political Science at the University of Tulsa College of Law who teaches advanced contracts, securities, taxation, and corporate law, he is an Instructor teaching Federal Income Taxation at Osgoode Hall Law School, York University's Professional Development Program, and serves as the Director, Taxation for the G20 Research Group and the G7 Research Group at the University of Toronto’s Munk School of Global Affairs. Michael’s primary expertise is in the global governance of international corporate taxation and its intersection with international economic law, and he has taught, conducted advanced research, and studied in the United States, Canada, the United Kingdom, Switzerland and France.
“This book is an outstanding study of how the remarkable 2021 agreement on the global corporate tax was reached and signed by over 140 countries. It should be read by anyone who is interested in the possibility of reaching multilateral solutions to global problems, not just tax experts.”
- Reuven S. Avi-Yonah, Irwin I. Cohn Professor of Law at the University of Michigan
“Motala’s book demonstrates how systemic shocks, expert networks anchored in the OECD, and distributional conflicts among States combined to alter the foundations of international corporate taxation. The analysis advances a ‘dynamic’ model of global corporate tax governance that explains both the evolutionary adjustments of the past decade and the potentially revolutionary character of the 2021 agreement. This model provides a coherent account of how crises trigger delegation to technical experts, how transnational epistemic communities construct new norms, and how bargaining among major powers and domestic political constraints determine the scope of implementation. This monograph stands out for offering not merely a historical record but an explanatory framework that will inform future scholarship on international economic law and multilateral governance.”
-Julien Chaisse, Professor & RGC Senior Research Fellow, School of Law, City University of Hong Kong
“The 2021 Agreement on Global Corporate Tax was unambiguously a milestone in the ongoing fight against tax havens and all ensuing negative external effects. The author has managed to put together an authoritative account of the workings of this remarkable achievement, the process that led to it, and its consequences. It is a must read volume for academics and practitioners alike.”
- Petros C Mavroidis, Edwin B. Parker, Professor of Foreign & Comparative Law, Columbia Law School
