Author(s): Ahmad Mohammad Al-Louzi
Considering the long history of the double taxation treaties, there is no doubt that their mechanisms of administrative cooperation are of paramount importance in the process of counteracting tax evasion as well as other financial crimes, e.g. money laundering of terrorism financing. At the same time, modern trends of globalization, digitalization and virtualization creates the new reality in which the criminals might find creative ways of committing financial crimes that demand the necessary reaction from the international community. The Multilateral Convention to implement Tax Treaty Related Measures to Prevent BEPS (MLI) is the unique example of multilateral tax cooperation that has to impede the growth of illegal activities in the area of taxation and to update the network of double taxation conventions. Nevertheless, the comparison of the mechanisms of interpretation of the conventional norms under the MLI and the multilateral environmental treaties demonstrates that the MLI does not provide the necessary basis for the maintaining permanent dialogue among its participants. Thus, it might have the restrictive impact of the efficiency of its application as well as the cooperation in the area of counteracting the financial crimes.