Keywords
Tax Policy
Management of Economic Sanctions
Central Europe
Management of System
How to Cite
Abstract
This article explores the concept of tax innovations within sanctioned taxation as a means to strengthen international economic security. It introduces a new framework – Pillar THREE of the Sanctions Tax Policy and GloSA (Sanctions Tax) – which mandates that an aggressor country indirectly finance the recovery of affected nations by supporting value-added chains between related companies. The proposed financial flow management mechanism outlines the role of non-resident companies (B, C, D) operating within the resident company (A) of the aggressor state, facilitating oversight by financial intelligence units to enforce sanctioned taxation effectively. Additionally, the study highlights the growing intersection of sanctions tax policy, energy security, and climate change mitigation. This approach aligns with international efforts to transition toward cleaner energy sources and reduce global reliance on economies that finance conflicts through fossil fuel revenues. This initiative aims to provide preventive economic protection and contribute to the cessation of military conflicts by leveraging financial oversight mechanisms. By integrating sanctions taxation, transfer pricing regulations, and environmental taxation, this paper presents a comprehensive approach to economic deterrence and international stability, reinforcing both geopolitical security and sustainable development objectives.
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