PWC Sweden: Top Tax Advice

Written by Henry Martin - Interview with Jörgen Haglund PwC | TAX Services | Partner on . Posted in Treasury & Tax Management










The increasing tax burden is one of the most important concerns of CEOs, driving the adoption of proper internal controls and robust financial reporting processes to satisfy tax authorities, regulators and other stakeholders. At the same time, tax authorities worldwide are concerned with ensuring both increased compliance amongst taxpayers and that their fiscal policies are not overtaken by global business and economic developments. The international tax system is changing rapidly as a result of coordinated actions by governments and unilateral measures designed by individual countries, both intended to tackle concerns over base erosion and profit shifting (BEPS) and perceived international tax avoidance techniques of high-profile multinationals. PwC Sweden is a leading provider of tax services, combining a strong understanding of business and economic environments with specialist tax knowledge. In the following interview, PwC describes the main tax issues of the day.

Congratulations on making top spot in our Top 5 tax advisers in Europe report, can you tell us the main areas/sectors of growth your business has seen in the last 12 months? 

Obviously, the BEPS project and the release of the final reports last year has had great impact on many businesses seeking our advice in various fields, like international taxation, transfer pricing, indirect taxes. There is an urgent need for businesses and other stakeholders to monitor the development and outcome from the BEPS project and legislative changes around the world that follows rapidly in different areas of taxation.  

Well Positioned for Tax

Written by Minister for Finance, Michael Noonan on . Posted in Treasury & Tax Management

The OECD Base Erosion and Profit Shifting (BEPS) project was designed to provide an internationally coordinated approach to protect tax bases and provide comprehensive international solutions to the problems of base erosion and profit shifting. Ireland committed fully to the BEPS project and will continue to play our full part in implementation.  As a small country with an open economy, it is important that Ireland keeps pace with international tax developments.

The BEPS process is one that we have welcomed.  The overall aims of the BEPS project are to prevent double non-taxation from arising due to mismatches in international tax rules and to better align the right to tax with real economic substance and activity. These aims are aligned with Ireland’s own corporation tax strategy – which is to attract real investment and jobs to Ireland.  Indeed, as companies seek to better align the amount of tax that they pay with their substantive operations, this will result in opportunities for Ireland as the alignment of substance with a competitive rate of tax has been the cornerstone of Ireland’s CT policy since the 1950s

The Implications of BEPS for CEOs and Board

Written by Rick Stamm PWC Global Tax Leader on . Posted in Treasury & Tax Management

On October 5, the OECD issued it formal recommendations on the Base Erosion and Profit Shifting (BEPS) Action Plan.   These recommendations have been subsequently adopted by the G20.  We acknowledge the monumental effort that has been put forth to produce a modernized international system of tax rules through the BEPS initiative.  

The BEPS recommendations do not address every instance of complexity in the tax laws of the global economy. In fact, they probably will lead to some new challenges. On the other hand, they do lay out an updated outline for solving some of the issues that exist today and most particularly for the alignment of substantive economic activity with related taxation in countries where a business operates.  The recommendations as a set make sense, although the optionality in them that was required to get to consensus in areas such as the digital economy, leaves a number of areas open to local country interpretation and some uncertainty, which is unfortunate.

The New Landscape of International Tax

Written by Jörgen Haglund PwC | TAX Services | Partner PWC Sweden on . Posted in Treasury & Tax Management

The changing global landscape of international tax entail challenges for multinational companies in adjusting and adopting their investment approach to the new regulatory environment. 

Regulatory changes

There are currently several ongoing regulatory changes within the international tax area. 

The OECD base erosion and profit shifting project (BEPS) - initiated in 2012 - is looking at whether and why multinational corporations’ taxable profits are being allocated to locations different from those where the actual business activities take place. A BEPS action plan was published by the OECD in July 2013. The main purposes of the BEPS action plan is to

- ensure that companies are taxed in the countries in which they are conducting their business activities, and 

- prevent double non-taxation as a result of gaps in the interaction between domestic tax systems. 

The action plan includes 15 action points within areas such as hybrid arrangements, interest and other financial payments deductions, transparency, substance and transfer pricing. The OECD issued its final reports on 5 October 2015.

Post BEPS and the New Global Tax Reform —What Every C-Suite Should Know

Written by members of the Vertex Chief Tax Office: Bill Brennan, M.S. in Taxation, CPA Nancy Manzano, M.S. in Taxation, CPA Robert Norton, M.S. in Taxation, CPA Bernadette Pinamont, J.D., CPA on . Posted in Treasury & Tax Management

The corporate tax practices of multinational corporations are under siege by world leaders, NGO’s, the OECD and EU tax authorities.  All demanding multinationals to pay their “fair share” and more than willing to highlight perceived abuses or avoidance in the mainstream media.

Estimating that world governments have lost up to $240 billion dollars  from aggressive BEPS by multinationals, in early October the OECD issued its package of fifteen “Base Erosion and Profit Shifting” (“BEPS”) measures that turn the century old international tax system on its edge.  Recently endorsed by all G20 leaders, advanced economies will phase in the provisions over the next few years beginning in 2016 impacting different multinationals in different ways.

BEPS – The impact in the Boardroom?

Written by Martin Lambe Chief Executive Irish Tax Institute on . Posted in Treasury & Tax Management

Amidst G20 discussions, much media analysis, and government debate internationally, “BEPS”, has progressively been making its way onto the boardroom agenda. The BEPS project, led by the OECD’s Pascal Saint-Amans, represents the most fundamental change to the international tax landscape in decades, and will have a significant impact on the way in which companies carry out their day-to-day business.  In addition, the EU is working in parallel on its own BEPS Directive which is expected to be released later this year.   The degree of the impact and the pace with which the changes will take effect is something that all companies and countries will be intensely working on over the coming months. At the Institute we are delighted to be part of that work by way of hosting the Harvard Kennedy-Irish Tax Institute Global Tax Conference in Dublin next March. 

Tax in the C-suite?

Written by Pascal Saint-Aman is Director of the Centre for Tax Policy and Administration at the Paris-based OECD. on . Posted in Treasury & Tax Management

New international tax rules change everything and here the OECD outlines the best way to comply with them.

Perhaps you've heard of a four-letter word – BEPS – that’s been making its way around tax circles and is now trickling up to the C–suites?  BEPS stands for base erosion and profit shifting, and it’s not just another alphabet soup acronym for your tax team to worry about.   It’s actually a major multilateral initiative for revising international tax rules being led by the Organisation for Economic Co-operation and Development. Come November, it will be on the agenda when G20 leaders meet for their annual summit meeting in Antalya, Turkey.  After that, it will have major implications for your business. So, what the BEPS are we talking about?

International tax training – never more important

Written by Deborah Hicks-Specialist international tax training provider DJH International Tax Ltd on . Posted in Treasury & Tax Management

The profile of the tax function in companies has rarely been as high as it is currently and the need for properly trained staff never more important. The global business world in which even the smallest companies operate means that understanding your domestic tax rules is not enough. Specialist international tax training provider DJH International Tax Ltd. has some of the answers. Founded in 2010 by Deborah Hicks, the company offers short, intensive courses on international tax, transfer pricing and US taxation, for in-house tax professionals and their advisers.

The Increasing Relevance of Tax for the CEO and the Board

Written by By J. Richard Stamm, Vice Chairman – Global Tax – PricewaterhouseCoopers International Limited on . Posted in Treasury & Tax Management

Companies do not have the luxury of curtailing their operations while the countries of the world change their tax laws The international business press, NGOs, politicians and others now discuss tax extensively and often emotionally.   Some very well known companies have been under public and political scrutiny in relation to their tax planning. In addition, some of these companies find themselves a subject of unlawful state aid investigation by the European Commission. Much of the focus is on whether companies are paying their “fair share”, a very troublesome concept, as it often has little or nothing to do with the applicable standards of the laws and regulations.