Sagit Leviner (Ono Academic College; Google Scholar) presents International Taxation: Contemporary Challenges & Trajectories, Analytical Report to The Bank of Israel (with Yehuda Porath (Bank of Israel)) at Hebrew University today as part of its Faculty of Law Tax Law Forum hosted by David Gliksberg:

The existing rules of taxation and the international division of taxing powers and jurisdiction originated more than a hundred years ago. This was when physical boundaries and the nation-state played a prominent geopolitical role, most trade was in physical goods, global value chains were fairly compact and unsophisticated, and trade made a relatively modest contribution to world GDP. While the global economy has drastically evolved over the past century, the international tax architecture, to this date, echoes its origins and determines the allocation of the tax base largely by reference to the geopolitical affiliation of the taxpayer and their source of income.

The existing rules of taxation and the international division of taxing powers and jurisdiction originated more than a hundred years ago. This was when physical boundaries and the nation-state played a prominent geopolitical role, most trade was in physical goods, global value chains were fairly compact and unsophisticated, and trade made a relatively modest contribution to world GDP. While the global economy has drastically evolved over the past century, the international tax architecture, to this date, echoes its origins and determines the allocation of the tax base largely by reference to the geopolitical affiliation of the taxpayer and their source of income.

This report aims to contribute to a better understanding of current trends and reforms in international taxation, by offering a thorough yet comprehensible analysis of pivotal issues in contemporary international tax design, its setting, on-going reforms and trajectories. The focus is on digitalization, the taxation of multinational entities and their expected impact on the State of Israel.