Tax authorities internationally are pursuing more stringent approaches to tax compliance and enforcement.
Cross-border taxation has never been a more topical, or divisive, issue.
Some governments are demonstrably keen to welcome and attract global corporate entities, to make use of their respective jurisdiction’s tax regimes and to do business in a conducive fiscal environment.
Other governments, and supranational organisations such as the EU, are proving less tolerant – militant even – toward current corporate cross-border tax practices. Here we are seeing a dogged pursuit to overhaul tax rules, remove the impact of base erosion and secure larger tax contributions from multinational companies active within their jurisdictions.
The spotlight on ‘Big Tech’s’ tax affairs, such as the likes of Amazon, Apple and Google, should be observed closely by the business community at large – and not just those with overtly global operations.
SMEs and OMBs that perhaps only ‘touch’ international aspects should watch developments in global taxation policy with interest, since any shift in tax assessment and contribution basis will, to a greater or lesser extent, impact business as a whole. A mooted corporation tax based on turnover or sales, for example, would have a devastating effect on many existing business models.
Implementation of the Base Erosion and Profit Shifting (BEPS) initiative is one such cross-border initiative that to date has proven far-reaching in its stated purpose of minimising variations and improving transparency in local tax regimes and reporting duties.
This creates an imperative for companies to take international tax advice for strategic and operational benefit.
Here to help
Enterprise Tax can help with all aspects of international tax advice. We work with companies to manage the tax implications of cross-border operations, advising on all aspects of international tax policy, rules and changes.
With cross-border tax concerns as far-ranging as company structuring, BEPS, transfer pricing, indirect taxation and outsourcing, international tax advice has the potential to create business risk as well as opportunities to drive competitive advantage through tax planning.
At ETC we have specific expertise in overseas property developments, working on large-scale international projects to create investment structures aimed at raising capital from UK resident investors and have also been involved in the establishment of a Real Estate Investment Trust (REIT) to be listed on the Channel Islands Stock Exchange.