Florida Tax Review


Monica Victor


This Article focuses on the OECD’s work on harmful tax competition to demonstrate how the OECD and subsidiary bodies’ governance structure, and the standard-setting process, built a fragile international taxation legal system that is not just impairing legitimate tax competition but also failing to promote cooperation among tax jurisdictions. The option for the harmful tax competition work among other tax issues covered by the OECD is justified by the difficulties faced by the WTO Dispute Settlement Body (DSB) while adjudicating the Argentina-Financial Services dispute. In this dispute, Panama challenged the imposition of defensive tax measures against harmful tax competition based on a list of non-cooperative tax jurisdictions issued by the Argentine tax authority. The clash between the international trade legal system and the international tax system unveiled the fragilities of the last related not just to the global governance structure but also the international tax standards for harmful tax competition. In spite of the recent efforts by the OECD by the lauching of the BEPS Project, the challenge of making the international taxation system work for all Members and non-Members remains.