What The Boardroom Needs To Know About Tax Today
Channel: MyTPAGlobal
Date: 14/06/2018

Multinational firms, already facing a multitude of challenges, seem to be hit hard by the latest OECD BEPS Project.

Aside from eliminating unwanted tax planning opportunities (closing loop-holes), the call for transparency is increasing the compliance burden for multinationals (cost may go up by up to 50%). With increased compliance also comes a “sharpening” of the principle of “substance” as it used to be called.

In today’s world the OECD, and as a consequence a multiple of tax authorities, requires the tax operating model of any multinational to be 100% aligned with the people that create the value for this multinational. In essence, economic reality is the main driver. Simply allocating an operating margin to a low-tax jurisdiction without the relevant people that create and manage this value in the same jurisdiction is a non-starter and creates the risk of double taxation!

You could argue that all this makes sense, yes it probably does. What is different, is that the tax authorities now have additional tools and additional reports filed by taxpayers, available to really assess whether the 100% alignment is reality. In case of doubt, they now have more facts available to ask the real relevant (audit) question.

In the above light, the additional compliance burden of repetitive reports to be filed year after year may trigger boards to push for more automation of tax compliance tasks to keep compliance costs at reasonable levels and the quality thereof at higher levels versus the current manual reporting. In addition, the risk of double taxation has increased since tax authorities are now more aggressively fighting for “their fair share”. In this context it appears, that the protection for taxpayers through tax treaties, advance pricing arrangements, etc., has not really increased but rather decreased.

Hence our call to Boards to understand the consequences of BEPS better and to make itself aware of any risk mitigating actions that can / should be considered for your organisation.

Key Highlights of the webinar

With this objective in mind, we invite you to an informative webinar where we will discuss the following:

- What has changed in the tax world since the OECD BEPS project
- How tax authorities are reacting to these changes
- How to manage Tax Risks in an uncertain tax environment
- What changes you might consider in your “Tax Controversy Strategy”

Speaker

- Raymund Gerardu, CFO/CCO, TPA Global, The Netherlands