A global survey report on Understanding Tax Changes as Economies Worldwide Drive Efficiency has been released by Taxand global network.
The key observations/ highlights of the Report include the following:
- Multinationals say tax is not the answer to economic woes: 76% of multinationals agree that tax, in isolation, is not the answer to economic stability, albeit there is little doubt of its role in determining the attractiveness of a country for foreign investment.
- Increasing pressure on resources: the tax challenges identified by multinationals are shifting and available resource is one of the biggest growing concerns for tax departments, up 6%.
- Increasing scrutiny slowing multinational growth: almost half (48%) of multinationals believe their expansion plans have been curbed by overzealous tax authorities, with 78% also confirming an increase in tax audits year-on-year.
- Public scrutiny and reputation: The rise of citizen activism: a 19% increase in the number of multinationals viewing public exposure of tax planning as detrimental to reputation.
- Increased dialogue between authorities and multinationals: multinationals have seen a marked improvement in relationships with tax authorities over the last year, jumping from 61% in 2011 to 84% in 2012.
- International tax: The battle for multinational investment: an increase in inter-country tax competition as governments battle to secure inward investment.
- Harmonisation: The double-edged sword: there remains a desire for tax harmonisation from 75% of multinationals.
- Tax moving up Board agendas: the importance of tax continues to grow, with a 16% increase in the number of CFOs identifying tax as being on their Board’s agenda ‘to a great extent’.