Modern Challenges of International Tax Cooperation and Armenia

Obviously, that the main destination for vast majority of capital flows are countries with favourable conditions, particularly countries that apply low tax rates and provide preferential tax regimes. Because of this process, the outflow of capital occurs from non-offshore countries to law tax or offshore jurisdictions, which is considered as a harmful tax practice. The issue is more emphasized in developing countries, as the national tax authorities more often have not enough capacity to fight against tax fraud and tax evasion. Aiming to solve the mentioned issues the Organization of Economic Cooperation and Development together with G20 have joined efforts to set up new standards for tax control (OECD Global Forum). They also elaborate new rules that will ensure taxation of profits where economic activities are carried out and value is created as well as increase predictability, transparency and flexibility of international tax environment for business. The article analyzes the government activities of the Republic of Armenia to create a tax system that corresponds to the current trends in international tax cooperation.