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Taxand Global Survey 2015

Taxand Global Survey 2015
Global
29 Jan 2015

Taxand is pleased to share the results of our annual Taxand Global Survey 2015 - Caught in the crossfire: MNCs prepare for the post-BEPS world. The survey was conducted with an exclusive selection of large multinational clients operating across industry sectors across the Americas, Europe and Asia, in order to examine the key tax challenges affecting businesses today.

Highlights

  • Reputation under fire: Multinationals stuck in a ‘lose,lose’ situation: 77% of respondents agreed that the exposure of corporate tax planning, if percieved as ‘aggressive’, has a detrimental impact on reputation
  • Politics and public opinion are shaping the future of multinationals: 60% of multinational respondents have reported an increase in tax authority audits over the past year with 70% also seeing an increased focus on substance
  • BEPS: the new frontier: Respondents were mixed on whether it will create a more sustainable tax system, although there is a clear appetite for reform, with 80% stating that initiatives to fundamentally reform the international tax architecture are desirable
  • Cross-border taxation issues continue to trouble multinationals: Transfer pricing was identified as the most challenging area of tax and also the area that has received the biggest increase in scrutiny. Cross-border tax issues have been punctuated by the debates around corporate inversions as well as companies’ offshore cash piles
  • Increasing competition in a harmonised environment: 83% of respondents feel that tax competition will increase over the next five years and, interestingly and perhaps counter-intuitively, 76% feel that BEPS will increase competition in corporate tax rates
  • Tax still high on Board agendas: 67% of respondents see tax issues as being on their Board agendas to a great extent or to some extent, in line with last year’s results

Press coverage

Taxand's Take

  • Review business operations in light of BEPS and implement a road map to ensure your business is able to meet the new requirements, scheduled for September 2015
  • Pay special attention to your transfer pricing policy, financing structure, ‘no substance’ companies/potential treaty shopping and lack of business purposes for structuring
  • Prepare defence positions in advance of potential tax authority challenges
  • Incorporate tax specialists in you Board and upgrade the tax function in your corporate charts
  • Prepare to respond quickly to adverse public attention on your tax structures and consider publishing your tax policy to achieve full transparency
  • Undertake a deep review of corporate governance, of any procedures established to control tax risks and of the standard operating procedure before the Tax Administration

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