Tax compliance challenges & tax reform impact

Taxation in Turbulent Times 

Efforts to harmonise international tax rules, strengthen environmental tax measures, and expand digital tax administration all mean more regulation, more tax compliance challenges and more complexity. What’s the tax reform impact to your business? 

Profits taxed where value is created. 

Fair share taxation and aligning taxation with economic activities, has become a prominent topic for international discussions. The aim is to ensure that businesses (and high-net-worth individuals) contribute their fair share of taxes to the countries where they generate profits, regardless of where they are headquartered. The outcome a more equitable distribution of tax burdens globally. International bodies, countries and tax jurisdictions are each increasingly focused on closing tax loopholes and ensuring transparency. Initiatives like the OECD's ongoing Base Erosion and Profit Shifting (BEPS) project to curb tax avoidance by multinational companies is a good example.  

Taxation that promotes environmental sustainability  

Governments are exploring how tax policies can incentivise sustainable practices and mitigate environmental impact. From carbon pricing mechanisms, such as carbon taxes and emissions trading schemes, to tax incentives for renewable energy investments and ‘green’ infrastructure projects. For example, in the UK The Plastic Packaging Tax (PPT) now charges businesses tax on plastic packaging that does not meet the minimum threshold of 30% recycled content. Unternehmenssteuerreformgesetz, Germany’s  Corporate Tax Reform Act, introduces several changes to business taxation in Germany. With the aim of encouraging sustainability, it includes enhanced tax deductions for investments in environmentally friendly technologies and sustainable practices. 

E-invoicing  

The must have tool in tax administration to meet tax compliance challenges. Generating, transmitting  and processing invoices between suppliers and buyers digitally delivers a number of advantages. From improving efficiency, reducing administrative costs, and minimising errors to helping facilitate seamless cross-border transactions. Many countries have implemented or are in the process of implementing mandatory e-invoicing to combat tax evasion and improve compliance. 

These efforts are set to intensify and will continue to shape tax policy globally for the near future. Your business will need to adapt by enhancing tax transparency and embracing digital tax solutions to comply with evolving regulatory requirements. 

Shining a light on tax reform impact 

More than ever business taxation demands a proactive approach to tax compliance challenges and strategic tax planning to mitigate risks and capitalise on opportunities.  

Watch this session for valuable insights on tax reform impact and tax compliance challenges. Prof. Dr. Jeffrey Owens of the Institute for Austrian and International Tax Law guides us through,  highlighting the international policy agenda, as well as the challenges and opportunities of a digital roadmap for tax administrations.