The international tax and tax transparency landscapes have changed dramatically in the last few years and businesses with a global footprint are having to comply with an ever-growing number of tax reporting obligations, moving tax compliance higher up the Board’s agenda than ever before.
Increasingly, tax is becoming a moral issue concerned with paying a “responsible” or “fair” amount of tax and it is beginning to be seen in a new light by many businesses. This shift in zeitgeist has led to approaches to tax advice changing. Over the last year alone, we’ve seen many individuals and businesses take a more holistic approach to their tax affairs as the pace of the complexity of changes shows no sign of slowing down.
It is evident that the tipping point has been reached, with many international organisations recognising that greater tax transparency is becoming the norm for conducting business. Now, businesses are using tax transparency as a form of communicating their approach to taxes and their corporate ethos by demonstrating how much tax they pay and the clarity of their international operations.
The increasing tax transparency requirements are becoming ever broader, influenced by a number of national and international projects, including:
- The Organisation for Economic Co-operation and Development (OECD) Country-by-Country Reporting (CbCR) requirements introduced by the base erosion and profit shifting (BEPS) project;
- Proposed European Union (EU) public CbCR;
- EU Capital Requirements Directive IV (CRD IV);
- The Extractive Industries Transparency Initiative (EITI);
- EU Accounting and Transparency Directives (EUAD); and
- The Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act).
Mazars experts can represent the interest of businesses with international operations and assist groups in balancing competing priorities, ensuring that compliance is maintained all the while continuing to add value.
Globally, Mazars continues to be active in the global tax transparency initiatives and are looking at the issue of public trust in business more broadly than purely in tax terms.