Necessity of Cooperation in International Taxation

Modern technologies brought about unbelievable evolution in international trade and business. Old legal principles including Benefit and Ability to pay and old concepts like Capital Import Neutrality (CIN) and Capital Export Neutrality (CON) are not anymore enough to answer the new problems arising from this evolution. International business taxation shall keep pace with this evolution. There are two approaches in this regard: an international taxation system or international tax cooperation. The first approach seems impractical. Hence, the second approach is the solution of the present problem of international business taxation.