Increased pressure on multinational companies regarding tax control

A total of 58 economies have increased tax controls on multinationals to strengthen international auditing.

In recent months, we have seen an increase in international taxation policies on multinational companies. As experts in international taxation comment, the regulatory complexity is increasing worldwide after the coronavirus crisis. Thus, the various tax authorities are implementing new tax regulations that increase the pressure on these companies.

1. Audit complexity

According to experts, the main regulatory complexity is the Transfer Pricing studies. In that regard, the audit agents consider it mainly due to highly complex documentation requirements and ambiguities in the regulations.

On the other hand, another important factor when measuring the level of tax complexity is the quality defects. In addition, there is an important problem with appeals against tax liquidations: the unpredictable amount of time between the filing of the appeal and the receipt of the corresponding decision.

2. Global Tax

Tax analysts are already calculating the impact of the OECD plan for the creation of a global minimum tax on multinational corporations. In this legislative framework, a total of 130 countries and jurisdictions, representing more than 90% of the world’s GDP and including the members of the G-20, will establish a new framework to reform the international tax scheme, including the implementation of a global minimum tax of 15% on multinationals.

3. International support

The plan displayed by the international bodies is postulated as the most disruptive global tax transformation of the last century, having the support of China and India a few weeks ago and emerging giants that previously had reservations about the proposal. The remaining elements of the framework, including the implementation plan, will be finalized in October this year.

Source: El Economista 26/08/21

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