Transnational Tax Information Exchange Networks: Steps towards a Globalized, Legitimate Tax Administration

In a global era, tax administrators must extend their reach beyond the borders of the nation state. They must cooperate actively with administrators from other countries and work to build transnational institutions and networks that give them the capacity to enforce national tax laws in respect of multinational and mobile capital and labour. This article discusses a range of trends indicating that national tax administrators are, finally, beginning to achieve the levels of transnational tax cooperation required to maintain national tax sovereignty. The article then explores the important question of legitimacy of these transnational networks, which will be crucial for their sustainability and effectiveness in the long term.