TaxCorporate TaxTax risk growing worldwide, finds EY

Tax risk growing worldwide, finds EY

Companies perceive greater tax risk from various sources over the coming two years

Tax risk growing worldwide, finds EY

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.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2w Alia Shoaib, Reporter
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

3w Alia Shoaib, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3w Clear Books | Sponsored
Autumn Statement: Investment and tax avoidance highlighted in Hammond's speech

Corporate Tax Autumn Statement: Investment and tax avoidance highlighted in Hammond's speech

11m Kevin Reed, Writer
Colin: Tell them about the money, mummy

Business Regulation Colin: Tell them about the money, mummy

11m Taking Stock
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

4w Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

1m Emma Smith, Managing Editor
Global tax avoidance convention set to be signed by over 60 jurisdictions

Corporate Tax Global tax avoidance convention set to be signed by over 60 jurisdictions

5m Emma Smith, Managing Editor