Managing Boards of companies with international operations will find that tax is now an item on their agenda, since
- BEPS has enhanced the corporate information on taxes accessible by tax authorities, placing companies at a higher risk of disputes and potential double (or even triple or quadruple) taxation
- Additionally, the post-BEPS environment is making governments file personal liability claims against multinationals’ representatives/advisors AND
- BEPS is often triggering a significant reputational impact as well. Based on the reaction of tax authorities seen today, a wilful/fraudulent BEPS outcome could easily lead to a few years behind bars.
Boards and audit committees are therefore recommended to:
- Take a structured approach to their global tax risk management;
- Have a written version of their global value chain;
- Make sure their storyboard on taxes is synchronized across countries;
- Have sound and implemented corporate governance policies in place for taxes;
- Deal with personal liability issues upfront;
- Agree on communication standards to all stakeholders.