Document Type

Report/Policy Paper

Publication Date

5-2024

Abstract

Reforming International Investment Law to Advance Tax Justice" highlights the detrimental impact of current international investment treaties on tax justice and sustainable development objectives. It argues that Investor-State Dispute Settlement (ISDS) mechanisms often impede states' ability to implement effective tax policies by allowing foreign investors to challenge tax measures. The brief recommends a comprehensive reform of international investment law to ensure that investment treaties support rather than undermine tax justice. This can include eliminating ISDS provisions, drafting new treaties that safeguard the sovereign right of states to regulate taxation, and facilitating cooperation among states to reform tax systems at national, regional, and international levels. Restructured investment agreements, combined with progressive tax policies, could significantly enhance tax justice, particularly for developing countries vulnerable to tax avoidance and evasion by multinational enterprises and wealthy individuals.

Disciplines

International Law | Law | Tax Law

Share

COinS