The Implications of International Treaties Aimed at Curbing Tax Fraud and Tax Evasion

Abstract

This study examines the legal and institutional implications of international treaties designed to combat tax fraud and tax evasion. It focuses on major mechanisms of international tax cooperation, including tax information exchange agreements, the Common Reporting Standard, automatic exchange of information, the BEPS Project, beneficial ownership transparency, and the Multilateral Instrument. These mechanisms enhance fiscal transparency, strengthen administrative cooperation, and limit the concealment of income and the artificial transfer of profits.

However, their effectiveness depends on consistent domestic implementation, adequate institutional capacity, reliable information, confidentiality safeguards, and effective enforcement. The study concludes that international treaties are essential for addressing cross-border tax misconduct, but they must be supported by coherent national legislation, secure data-exchange systems, stronger administrative resources, and an appropriate balance between tax transparency, taxpayer rights, data protection, and fiscal sovereignty.