Following the financial crisis of 2008 and ensuing austerity measures, politicians turned their attention to individual tax evasion and corporate tax avoidance. The United States enacted the Foreign Account Tax Compliance Act (FATCA) in 2010 and signed a series of Intergovernmental Agreements (IGAs) for the exchange of tax information. The OECD added Article 27 to its model tax treaty, laying out the rules for contracting parties who wish to collaborate in collecting taxes within the other State. Furthermore, the OECD developed the Multilateral Agreement for Administrative Assistance in Tax Matters (MAATM) and initiated the BEPS project to reduce tax evasion and tax avoidance globally. One of the missions of the BEPS project is to ensure transparency while promoting increased certainty and predictability. Action 5 focuses on the transparency of harmful tax practices, particularly in the IP regimes. Action 12 requires taxpayers to disclose their aggressive tax planning arrangements. Action 13 reexamines the transfer pricing documentation. While these reforms are a step forward in transparency, more focus needs to be placed on financial secrecy and transparency in future reforms.

The Australian Government has negotiated bilateral tax agreements (also known as ‘treaties’ or ‘conventions’) with the governments of more than 40 nations. These agreements are often referred to as Double Taxation Agreements (‘DTAs’) since one of their main functions is to prevent international juridical double taxation. DTAs deal with double taxation issues by allocating taxing rights in relation to cross-border transactions between Australia and the respective ‘Contracting States’. DTAs also assist with the prevention of tax evasion through the exchange of information between the relevant tax authorities. They also indirectly serve to promote trade and investment between Australia and the Contracting States, as they reduce the uncertainty of international tax treatment of cross-border transactions. International juridical double taxation essentially arises where two countries tax an entity on the same amount. This can occur due to the different kinds of conflicts. For instance, double taxation can arise because it is common for countries to tax residents on their worldwide income and non-residents on income sourced within their territories.