Multinationals told to wake up to tax threat
Friday 15 October 1993
BUSINESSES operating across national borders must start a fundamental re-think of the way they are structured to counter the changing tax environment, says Ernst & Young, the accountants and management consultants.
The firm, which attracted 450 delegates from a range of companies to its annual tax conference in London yesterday, believes the moves are necessary because nearly every leading economy has either introduced or is planning important changes to the taxation of multinationals.
Among changes already made are the introduction of a draconian penalty regime into US regulations on transfer pricing, or the price at which components or products are traded between different parts of the same organisation, and alterations to the tax treaty between the United States and the Netherlands that may mean that the latter is no longer the country through which international structures should be focused.
John Fairley, the partner in charge of Ernst & Young's London-based international tax group, said: 'The challenge for tax planners in the 1990s is to create new structures to reflect the changing business and regulatory environment.'
In particular, he said that on a global basis tax authorities were responding to the growth of international trade by introducing ever more complex legislation, narrowing the benefits available through tax treaties and co-operating to minimise the impact of planning techniques.
Kevin Paterson, a partner in the firm's financial services group, told the conference that it would be increasingly essential for tax planning to be better integrated into the business planning process than in the past.
- 1 Jennifer Lawrence scores first UK top 40 single with Hunger Games track 'The Hanging Tree'
- 2 Shia LaBeouf claims he was raped during #IAMSORRY art installation performance
- 3 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
- 4 Scientists predict green energy revolution after incredible new graphene discoveries
- 5 Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Kim Jong-un 'in dire need of allies' within his own government as younger sister appointed to senior role
Black Friday UK: The shops hit by chaos and violence as shopping frenzy sweeps country
Scientists predict green energy revolution after incredible new graphene discoveries
Russell Brand: 'Katy Perry? I don’t know who that is'
Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Obama: The only people with the right to object to immigration are Native Americans
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ukip mocked after mistaking Westminster Cathedral – for a mosque
David Cameron sets out immigration reforms: We should distrust Ukip and their 'snake-oil of simple solutions'
iJobs Money & Business
Excellent Package: Austen Lloyd: EAST ANGLIA - SENIOR SOLICITOR LEVEL ROLE** -...
£Attractive Package: Citifocus Ltd: Prestigious asset management house seeks a...
£Negotiable: Citifocus Ltd: This is a varied role focusing on the firm's mutua...
£90000 - £140000 per annum + benefits: h2 Recruit Ltd: Are you a high achievin...