At a time when many governments are grappling with significant budget deficits, tax planning strategies that rely on cross border profit shifting have drawn the scrutiny of global regulators and taxation agencies.
Following initial reports from the OECD working party on Base Erosion and Profit Shifting, the taxation obligation of multinational corporations has become headline news and is increasingly a matter of reputational risk.
Public sentiment is high on the issue, and political motivation for change is strong. Aggressive timelines are already in place for the introduction of key recommendations, such as Country-by-Country reporting.
Change would appear to be imminent but does that really mean greater transparency is inevitable?
If so, will affected entities that are well prepared to confidently bare all on their taxation positions fare better than those exposed to intense regulatory scrutiny, trial by media and increased financial, operational and reputational risk?
The latest release in the Thomson Reuters taxation insights series, The Transparency Imperative takes a closer look at the implications for finance professionals and taxation specialists. It explores recent developments in international taxation law and poses additional questions to industry and academic experts about what transparency is likely to mean in a post BEPS world.
Click here to download our latest paper.