globalization and taxation
The forces of globalization, left unchecked, will undermine the ability of governments to impose taxes fairly and effectively. Globalization increases opportunities for international tax avoidance and evasion, facilitates capital flight, and encourages tax competition among Governments. As a recent United Nations report states: "To regain the power to tax and thus the ability to mobilize domestic resources for development, countries need to cooperate among themselves to reduce unwelcome forms of tax competition and to reduce opportunities for tax evasion, tax avoidance and capital flight."
.
