EY Finds Global Tax Risk may Accelerate
A survey by Ernst and Young (EY) has found that more than 80% of companies expect to see accelerating tax risks over the next two years. The survey took in the opinions of 830 executives in tax- and finance-related professions.
A particularly notable concern was the risk of double taxation. Nearly a third of companies, including roughly the same proportion of British respondents, expressed their concerns over this issue. Double taxation may arise from a lack of coordinated action on the part of national governments to deal with issues relating to the OECD’s Base Erosion and Profit Sharing (BEPS) initiative.
68% of companies also felt that the past two years had seen increasing levels of aggression in tax audits. When the survey was last conducted three years ago, only 57% expressed similar concerns. Compared to the 2011 survey, the number of companies concerned about media coverage of tax issues rose from 60% to 89%.