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3/4 of multinational CFOs experiencing uncertainty due to political tax debate

Finland

The annual global survey of multinational CFOs conducted by Taxand has shown that multinationals are suffering from increasingly confusing messages around tax legislation by regulators and Governments worldwide. Taxand Finland takes a look at the key highlights of the global survey which explains the perspective of the CFO regarding recent tax debates. 

Tax planning in a hostile environment

  • 76% of survey respondents said that the exposure in the media of corporate tax planning activity has a detrimental impact on a company’s reputation 
  • 31% said that the intense media focus on tax planning had made them change their approach to tax planning 

Substance

  • 74% of respondents felt that their tax authority has been more focused on substance in the last year

The transfer pricing witch hunt

  • 20% of respondents, the biggest proportion of responses by some margin, confirmed transfer pricing as the most challenging aspect of global taxation 

The impact of harmonisation

  • 82% of global respondents felt that their tax authority had been co-operating more with other tax authorities around the world over the past year
  • Less than half of multinational respondents felt a global profit split approach to tax reform is a realistic solution for corporate taxation 

Scrutiny and the search for tax revenues

  • 73% of respondents are seeing a rise in the frequency of tax audits as Governments across the globe continue to scramble for tax revenues
  • Looking beyond corporate tax revenues is also an acknowledged trend – VAT, for example, is becoming an increasingly pivotal revenue raiser for Governments
  • 78% of multinationals have reported a rise in compliance costs over the past year 

Tax remains high on board agendas 

  • 70% of respondents see corporate tax as on the board’s agenda, with the year ahead promising to be as important as the last with legislative change set to continue

Discover more: 3/4 of multinationals experiencing uncertainty due to political tax debate


Your Taxand contacts for further queries are:
Janne Juusela
T. +358 9 6153 3431
E. janne.juusela@borenius.com

Jarno Makela
T. +358 9 6153 3224
E. jarno.makela@borenius.com

Sanna Lindqvist
T. +358 9 6153 3523
E. sanna.lindqvist@borenius.com

Access your copy of the Taxand Global Survey here >

First published in Thomson Reuters Taxnet Pro, 26 February 2014

Taxand's Take

Confusion dominates the global tax arena. Court cases, political and media scrutiny of multinationals’ tax planning, frequent amendments to legislation, retrospective taxes and the introduction of new cross border tax measures such as the Financial Transaction Tax and guidelines such as BEPs has led to an air of uncertainty. The absence of legislative stability and consistency is impacting the confidence of those with the power to fuel the global economy. 

Taxand's Take Author

Janne Juusela
Finland

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