Tax policy & Administration

The recommendations of the BEPS Project, led by the Organisation for Economic Cooperation and Development (OECD), are at the root of much of the recent coordinated governmental activity on perceived international tax avoidance techniques. The recommendations published in October 2015 have been, and are being, supplemented with additional standards and guidance.

We can help you:

• understand the impact of BEPS Project standards or best practices and identify significant risk areas
• plan for variations between jurisdictions in terms of timing, methods and the extent of implementation
• follow remaining BEPS work, consultations and areas of potential focus — through our people, information services and insights.

Base Erosion and Profit Shifting (BEPS) Action Plan

The DAC6 directive has been in place since June 2018. It created new reporting obligations for affected intermediaries and taxpayers, depending on the nature of the arrangement and local law.

It applies to cross-border tax arrangements which meet one or more specified characteristics (hallmarks), and which concern either more than one EU country or an EU country and a non-EU country.

We can help you understand:

• whether DAC6 is relevant to your business
• what you need to do to stay compliant.

DAC6: The EU Directive on cross-border tax arrangements

Tax policymakers, globally and domestically, are increasingly focusing on their contribution to environmental and green agendas. Energy taxation; schemes focused on reducing carbon emissions and neutralising the impact of foreign markets through border adjustment mechanisms; and credits and incentives for those making efficient investments go hand in hand with taxpayers own attempts to display environmental credentials to this stakeholders, whether they are investors, employees, regulators or others.

We can help:

• share economic analysis for use by or with policymakers
• monitor developments and alert stakeholders with impact assessments
• connect stakeholders such as by joining communities, roundtables or study groups (e.g., our carbon tax study group)
• prepare briefings for taxpayers to share with stakeholders
• prepare strategies for reporting on tax as part of a wider business strategy, including as part of an environmental, social and governance (ESG) approach.

Environmental and green taxes
European Comission releases a number of 'green taxation' measures

We all work in an increasingly globalised economy, with constantly evolving technological innovation. The interplay among these trends is having a significant impact on businesses, on governments and ultimately on tax systems. The pace and volume of indirect tax changes are unprecedented and create considerable challenges for businesses. We can expect this to continue for some time.

The PwC Global Indirect Tax Policy Team is proactively involved in helping shape sound future indirect tax policies aimed at:

• eliminating trade barriers and creating a business-friendly environment
• encouraging growth and investment
• safeguarding tax revenues for governments
• improving legal certainty, efficiency and reducing costs for all stakeholders.

We help business and governments stay up-to-date with global indirect tax policy trends and developments. We also help them stay part of the conversation through the full policy cycle, from thought to implementation.

We act as bridge-builders between business and government, bringing together tax policy stakeholders, including technology experts. Together, we work to shape sound tax policies for a better tomorrow.

Indirect taxes

A number of supranational organisations are responsible for setting standards, providing guidance or committing to joint action on tax matters. Through these bodies, several territories' governments or tax authorities act together to determine international tax rules. Still other bodies contribute to the formulation of tax policy. Our Tax Policy Network regularly works with:

• the Organisation for Economic Cooperation and Development (OECD, including through Business at OECD, formerly BIAC), and related forums
  
• the Platform for Collaboration on Tax and/or its other members: the United Nations (UN), International Monetary Fund (IMF) and World Bank Group (WBG)
• the Group of 20 (G20, T20 and B20) as well as the G7/G8 major countries and G24 Intergovernmental Group on International Monetary Affairs and Development
• the European Union (EU), the Gulf Cooperation Council (GCC), the Association of Southeast Asian Nations (ASEAT) and other regional alliances
• the African Tax Administration Forum (ATAF), the Inter-American Center of Tax Administrations (CIAT), the Intra-European Organisation of Tax Administrations (IOTA) and other associations of tax administrations
• bodies of professional tax practitioners (and tax committees of wider trade bodies), NGOs and the public, speaking through various channels including the media.

Supranational organisations and other stakeholders

More people than ever have a vested interest in tax matters, including tax transparency, reporting and the tax gap, all of which are in greater focus for governments supranational groups, and NGOs. This means a long-term, transparent tax strategy is more relevant than ever for corporate taxpayers — on that involves clear board tasks and responsibilities, board oversight, effective tax-risk management and auditable tax reporting.

We can help you:

• design and implement a tax governance framework
• build trust and enhance your reputation
• consider your Total Tax Contribution
• promote tax transparency with country-by-country reporting
• benefit from the findings in PwC's annual Paying Taxes study
• put in place effective tax-rate benchmarking.

Total Tax Contribution Framework
Sustainable Tax
Corporate tax governance
Building Public Trust Through Tax Reporting

Globalisation and digitalisation are forcing policymakers around the globe to look at international tax frameworks, making changes to reflect the effects on their tax bases. These changes will apply to all large international businesses, not just highly digitalised businesses.

The G20/OECD Inclusive Framework has been reviewing the rules of the international corporate income tax system. Made up of nearly 140 countries operating on an ‘equal footing’, the project is expected to produce a consensus solution by the middle of 2021.

But enough countries are moving unilaterally — for either the short-term or longer — that a global consensus may not be reached. This could create distortions, uncertainty and complexity.

We can help you consider and understand the impact on:

• the effective tax rates your business is subject to
• supply chains and business structures
• compliance burdens
• deal capacity
• communications and reputation.

Taxation of the globalisation and digitalisation of the economy