Governance in brief: a tax reporting briefing for NEDs
The Global Tax Reset
The taxation of large corporates has been high on the public agenda for a number of years and governments are now increasingly willing to act, together and along, to revisit international and domestic tax rules. The OECD/G20’s Base Erosion and Profit Shifting (BEPS) project has brought together over 60 countries over the last two years to review and refresh international tax standards. The European Union has sought to address perceived issues, such as in the area of state aid, and some countries have moved unilaterally, as we have seen in the UK through the introduction of the Diverted Profits Tax (DPT) which, from 1 April 2015, applies a tax rate of 25% to profits of multinationals where the deemed artificial diversion of those profits from the UK gives a tax advantage to the multinational group.
In our latest issue of Governance in brief, we discuss how BEPS actions will be taken forward by participating countries, how companies are responding, and highlight some key questions to ask to the board.