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2013 is The Year of The Intangibles
Tax authorities are running out of ways to increase tax revenues. Without venturing into the politically undesirable territory of tax rate increases, intangibles are one of the very few areas left to explore.
Taxand Global has announced the results of the first Taxand Global Intangibles Survey. This Survey is designed to assess multinationals' intangibles portfolios and reviews multinationals' current intangibles portfolios while exploring multinationals' familiarity with the OECD TP guidelines regulations, auditing and tax related dispute resolution and multinationals' tax strategies and planning related to intangibles.
The highlights of the Taxand Global Intangibles Survey are telling:
- 73% of respondents do not currently implement a tax planning strategy for intangibles
- 63% expect an increase in the level of enforcement activity by tax authorities
- 72% of respondents are concerned about brand reputation in relation to tax planning activities
- 88% of respondents that have implemented a tax planning strategy for intangible assets agree that the strategy delivered an increase in profit
In 2013 multinationals can expect scrutiny of their intangibles and business restructuring arrangements to intensify. There is still time for corporates to make the necessary changes to their policies, pricing and supporting documentation. All multinationals should focus on the specific OECD changes and evaluate whether they can withstand a potential challenge.