Multinationals Now Looking for Enhanced Relationship With Tax Authorities
Luis Jones, the Head of Spain’s Tax Auditor’s Office, today shared some key insights at a global tax conference for multinational companies, held in Madrid by Taxand, the world’s largest independent global organisation of specialist tax advisors to multinational businesses.
The need for governments across the globe to address budget deficits has influenced the nature of the relationship between tax authorities and multinationals. The OECD has recognised the move from ‘Basic’ to more ‘Enhanced’ relationships based on trust.
Changing corporate income tax rates and a crackdown on tax fraud have contributed to this need for Enhanced Relationships. In many jurisdictions worldwide, working groups have been set up combined with new Codes of Conduct, aimed at reducing levels of risk in relation to tax matters. Combined, these developments have helped to bring tax issues further up the Board’s agenda.
Looking forward relationships between tax departments and the authorities are only likely to enhance further. The need for tax administrations and taxpayers to move to a higher level of cooperation has become increasingly apparent amidst global economic instability. As this new phase in the relationship develops tax intermediaries are more important than ever, helping multinationals to define the levels of disclosure required.
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