At the start of the 2020s, the roles of corporate tax planning and regulation are under increasing scrutiny as questions of ethics and corporate citizenship continue to rise up the commercial and trade policy agenda.
Tax behaviour is now a major feature of corporate reputation, with instant communication putting intense pressure on international companies to publish information on how they meet their tax obligations and manage tax risks. The EU’s mandatory reporting requirements for cross-border tax arrangements (the DAC6 regime) carry heavy sanctions for non-compliance. With DAC6 becoming fully applicable across the EU on 1 July 2020, disclosure is a key issue for intermediaries, taxpayers and national tax authorities.
Fiscal transparency and fairness are key concepts not just for enterprises and individuals, but for the governments and financial institutions who compete to promote and attract international trade and investment. The G20/ OECD project to tackle base erosion and profit shifting (BEPS) has brought together over 135 countries in a collaborative effort to combat tax avoidance.
Digitalisation is a key focus of the BEPS project. As the global digital economy continues to produce new products, services and commercial practices in every sector, it raises a host of new questions for international tax policies and structures. Online markets and their tax implications for domestic and cross-border transactions are having game-changing effects on how and where business is done.
Many tax authorities are ramping up their enforcement actions, armed with stiffer penalties and a more targeted approach to investigations. The net result? Taxpayers of different kinds – multinationals, financial institutions, funds, investors and high net worth individuals – are facing increased tax risks and pressures. The right advice can make all the difference. Experts can help you shape your strategy, manage the risks and make the most of the opportunities in the tax landscape of the 2020s.