Over the past two years, enterprises, governments and citizens have grappled with unparalleled technological evolution and new business models, as well as significant tax reforms, regulatory changes, geopolitical challenges and climate concerns.
Amid the wind-down of stimulus packages, inflation and in some cases higher cash reserves, corporate tax strategies are becoming central to the pursuit of digitalisation, M&A and supply chain restructuring. Against the backdrop of a widespread prioritisation of ESG principles, there is a global push towards tax compliance and fair taxation. As a result, the OECD has proposed two major shifts. Pillar One addresses the need for multinationals to pay tax based on revenue generated in the countries where they operate, not just where they are physically located. Pillar Two meanwhile aims to set a minimum global company tax rate. But as traditional stakeholders across the world are increasingly seeking a unified approach to tackling inequalities, they are being disintermediated by fast-moving technologies such as cryptocurrencies, non-fungible tokens (NFTs) and decentralised finance (DeFI). This means that companies wishing to experiment with innovation must also aim to adhere to global tax rules that may struggle to keep pace. Looking ahead, finance executives must walk a fine line between competing interests: multilateralism and protectionism; innovation and regulation; capitalism and social inclusion; climate and continued revenue growth. Because taxation – who is taxed, where and how – linking all of these themes, it is vital to access the best advice. Our 500-strong global tax group works across sectors, markets and expertise areas such as technology, M&A and ESG to help you identify legal and policy shifts, maximise tax effectiveness and overcome disputes to make the best of your business in 2022 and beyond.
