Business of all sizes - everywhere in the world - are affected in some way by these trends, so it's important to take the necessary steps to ensure your operations comply.
In April 2019 I had the pleasure of speaking at the 19th Annual US and Europe Tax Practice Trends Conference in Paris. The world is truly global now, and so is the tax policy landscape, which has changed considerably in the past several years. And there are good reasons to expect that it will continue to evolve for some time to come.
Currently, global tax authorities have two main areas of focus:
Safeguarding tax revenue Ensuring a level playing field between local and foreign suppliers, while fostering economic growth. They're quite ambitious goals that are essential for cross-border businesses to understand in terms of how they translate into tax policy and therefore impact company operations. Here are four key trends that stem from global tax authority priorities. If you need help assessing the impact on your business operations from an accounting and tax perspective, make an enquiry with us.
The rise of digital tax reporting
Of great concern for the majority of conference participants was the digitisation of tax reporting, as it requires businesses to provide much more detailed information to the tax authorities - and in a new format.
Most businesses need to carry out internal reviews, restructure processes and data capture to ensure they have the necessary information in their systems. But that's just step one; business systems need to be able to 'talk' with the newly-digitised systems of the tax authorities. This typically requires not just an investment in personnel but also a potentially significant investment in new technology. Reporting more detailed information obviously means tax authorities will have more insight into business operations, and therefore audits may become more frequent.
I should point out that the rise of digital tax reporting is not a complete headache for business - tax authorities are harnessing the latest technologies in helpful and creative ways to provide better service to taxpayers:
Spain has launched a virtual system to answer questions regarding international tax In Australia, 'Alex your Virtual Assistant' - aka a chatbot, has become the online face of various government departments to answer taxpayer queries. 2. Tax rate and rule changes
Tax rules and regulations are of course changing all the time, but one change that is...