Preface

Tax treaties play a key role in the context of international cooperation in tax matters. On the one hand, they serve to encourage international investment and, consequently, global economic growth, by reducing or eliminating double taxation over cross-border income. On the other hand, they seek to enhance cooperation among tax administrations, especially in tackling international tax evasion. Developing countries, in particular the least developed ones, often lack the adequate skills and experience to efficiently interpret and negotiate tax treaties. This may result in difficult, time-consuming and, in worst-case scenarios, unsuccessful negotiation of tax treaties, which may not adequately address policy priorities of developing countries. Moreover, their capacity to be effective treaty partners may be jeopardized, especially as it relates to cooperation in combating international tax evasion.

Related Subject(s): International Trade and Finance