G8 summit provides opportunity to reduce tax complexity, increase information sharing, and promote a consistent approach to transparency, says EY
17 June 2013
EY welcomes the opportunity that the G8 summit on Tax, Trade and Transparency provides to address the current debate around the taxation of multinational companies.
John Dixon, UK Head of Tax at EY commented:
"The issues of tax, trade and transparency are important for many countries and the G8 meeting in Northern Ireland facilitates a broader focus on these concerns. Given the debate, I hope that the G8 will take the following opportunities that are best dealt with at a multi-governmental level. Success in these key areas will encourage world trade and provide the right environment for growth.
"A key concern of tax authorities is to understand the nature of the transactions that cross in and out of their jurisdiction. The technical challenges of these transactions are being considered at the OECD, and today is a great opportunity for the G8 to extend the focus onto common transfer pricing and dispute resolution rules. The lack of common standards and comprehensive rules in this area places excessive burden on companies and authorities alike, as is evidenced by a steep increase in unresolved mutual agreement procedures, and stops the information being readily compared by tax authorities. This is a good example of a change that would increase efficiency for all.
"Full alignment by the G8 countries around transfer pricing determination and documentation, combined with appropriate exchange of information protocols between the G8 countries, would also provide greater transparency to the tax authorities as to the role that any country's operations have within a global group. This is an initiative that should include all governments."
Commenting on the summit, Chris Sanger, Global Head of Tax Policy at EY added:
"Today's summit comes at a time of change and challenge, and yet provides a great opportunity for the largest economies to endorse efforts to reduce complexity, increase information sharing between governments, and develop a more consistent approach to transparency between taxpayers and tax authorities."