Turbulence in the global tax environment - A disruptive storm or an opportunity to outshine?
Asia Pacific Tax Notes, which is launched annually, provides a comprehensive overview of the key tax developments in 19 territories in the Asia Pacific region.
The demand for increasing tax transparency for corporations emerges as a key area of focus for governments, tax authorities, the media and the public worldwide. There have been various measures considered by countries in the region for increasing tax transparency and enhancing cooperation between tax authorities. Examples include improved transfer pricing documentation and country-by-country reporting, mandatory disclosure of aggressive tax schemes, a mandatory public tax transparency regime and the automatic exchange of financial account information in tax matters.
Multinational corporations operating in this changing tax transparency landscape need to carefully manage issues such as the additional costs for complying with the increased tax disclosure, the risks of their tax affairs being misunderstood by stakeholders or the public given that only limited information is publicly disclosed as well as the trend that tax is becoming a significant driver of companies’ reputation and brand health.