The tax smell test

[...]he says it is necessary to spend a lot of time avoiding the "elephant traps" - the unforeseen consequences of antiavoidance provisions that could force companies to pay tax where the legislation had no intention to collect any. No one wants to talk openly about other companies' t...

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Bibliographic Details
Published in:Financial Director 2012-05, p.32
Main Author: Sawers, Andrew
Format: Magazinearticle
Language:English
Subjects:
Administrative agencies
Corporate governance
Corporate taxes
Corporations
Court decisions
Financial services
Intellectual property
Laws, regulations and rules
Legislation
Reputations
Risk assessment
Tax avoidance
Tax policy
Taxation
Transfer pricing
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Summary:[...]he says it is necessary to spend a lot of time avoiding the "elephant traps" - the unforeseen consequences of antiavoidance provisions that could force companies to pay tax where the legislation had no intention to collect any. No one wants to talk openly about other companies' tax affairs, but it is clear that the ability of major web-based retailers to perfectly legally locate their business more or less anywhere that suits their tax strategy is one sign there is something wrong with the international tax system.Woolhouse says that the OECD guidelines on transfer pricing - which make it possible to get cohesion in tax laws across multiple jurisdictions - have simply failed to keep pace with business developments, not least the internet, intellectual property and financial services.
ISSN:0961-2556