International companies, particularly those in Asia, are shying away from
risky tax planning as tax authorities crackdown on
aggressive avoidance, and reporting requirements tighten.
An international survey by
& Young of 470 companies in 14 countries found that Asian
business had become especially cautious, with just over 50% of the respondents
in China, Australia, Hong Kong and China becoming more risk averse in their tax
planning over the last two years.
In Europe and North America, only 27% and 22% of those polled expected to
become more cautious in their approach to tax planning. But Ernst &
Young said this was due to the earlier introduction of tax regulation in the
West, which limited the effectiveness of tax planning.
Increased scrutiny, however, was also playing a role in the approach to tax
planning, as companies aimed to reduce financial and reputational risks.
The report found that tax financial reporting had
increased by 14%, while the time spent on planning and routine tax compliance
had reduced by 8% and 13% respectively.
Read the full survey
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