European Tax Survey
UK and Netherlands rank as the most attractive European economies to operate in from a tax perspective; 49% call for more certainty about the future of the tax system; Just over half of respondents think the base erosion and profit shifting (BEPS) project is important to their tax department (51%) but 65% think it is not important to their organisation's leadership
The report surveys European tax professionals from 814 large companies, from 29 countries. UK and Netherlands rank as the most attractive European economies to operate in from a tax perspective. They are followed by Germany, France, Spain, Russia and finally Italy. We also asked respondents to rank the same economies in terms of most challenging to deal with from a tax perspective. Last year’s respondents felt that Russia was the most challenging, but this year Russia ranked 6th most favorable. Reasons for a major economy to rank less favorably included the complexity of the tax rules, higher administration burden and slow progress with tax audits. The fact that Turkish respondents rank Russia as one of the most attractive to deal with from a tax system perspective is because of the number of organizations doing business in those economies.
Tax in the spotlight
More than half (56%) of respondents thought there had been increased levels of discussion and scrutiny around corporate tax strategy, especially from shareholders. The majority of respondents had not been asked by external (77%) or internal stakeholders (60%) to justify their tax strategy.