Chief financial officers and tax directors are pausing for thought, or altering plans as the world waits to find out the full extent and details of potential US tax changes, according to a survey by Taxand International.
As we await more thorough proposals, US multinationals are somewhat scrambling in the dark, and are rightly concerned about potential impacts from what may prove to be dramatic tax reform, if Republican plans for a border adjusted cash flow tax are pursued, or if the much less ambitious Trump proposals are pursued.
The poll also found that over two thirds (69%) believe that tax auditors have been more aggressive in their activities in the last year. A quarter (25%) said there had been no change and just 6% said auditors had been less aggressive. This is compared to 77% who said last year they had seen an increase in audits, and 60% in 2015.
When asked about the impact of increased tax transparency, 88% of CFOs and tax directors said they were concerned about the potential exposure of the information provided to meet the proposed country-by-country reporting standards, down from 91% last year.
In comparison, just 12% said they weren’t concerned. In addition, 96% respondents said they believed increasing global tax transparency will increase the cost of compliance, up from 89% last year.