MORE THAN four in five companies expect already-heightened tax risks to accelerate over the coming two years, EY has found.
A survey of 830 tax and finance executives in 25 countries, including 44 respondents from the UK, found companies view the potential lack of co-ordination by national governments around the OECD’s Base Erosion and Profit Sharing (BEPS) project as a major risk.
In particular, the risk of double-taxation arising from limited co-ordination on BEPS and potential unilateral actions by nations was a concern raised by almost a third of businesses.
That sentiment was echoed by around a third of British companies.
“International companies share the OECD’s concern that coordinated action by national governments is necessary to ensure any BEPS-related recommendations are productive.” said EY head of tax policy Chris Sanger. “The OECD can play an invaluable role in preventing what it has called a ‘global tax chaos’ that results in double taxation and increased controversy by pressing for common approaches and consistent standards.”
Away from the OECD, 68% reported that they feel tax audits have become more aggressive in the last two years, up from 57% in 2011 when the survey was last conducted. The news media has also been an even bigger driver of tax-related reputation risk, with 89% of the largest companies concerned about news media coverage of taxes, up from 60% three years ago.
At HMRC, Dmitri Surendran was responsible for leading the London team of the offshore, corporate and wealthy unit of the fraud investigation service
Research also finds that 84% of businesses believe that the government has not provided enough information about digital tax plans
A total of £16bn was lost through tax fraud last year, according to estimates released by Pinsent Masons
Additional tax a result of compliance investigations by HMRC, but overall revenue falls