International tax complexity
There are two reasons for looking at the wider international context in which European taxation is situated. First, as shown in Chapter 5, the construction of EU policy problems acquires distinctive political implications when problems are ‘framed’ in the conceptual paradigm of tax complexity. It is therefore useful to examine the globalisation of taxation with the aim of drawing implications for the institutionalisation of principles, rules, and organisations dealing with the international tax order. Indeed, it is within the global process of tax policy institutionalisation that EU tax policy is made. The second reason, which is partly connected to the first, is that the EU tax policy regime is only one of the sources of internationalisation of domestic tax policy. For EU countries, the main challenges to tax sovereignty derive more from the globalisation of capital, tax havens and international tax entropy than from EU directives.