New technologies are transforming tax, whether it’s how taxes are collected or what can be done to crack down on evasion. Businesses are eying a more cost-efficient future, while others fear the loss of jobs will hit state finances and call for a tax on robots.
ITR breaks down the developments that led to the conviction, and subsequent court cases, of former PwC employees Antoine Deltour and Raphaël Halet, who exposed more than 300 multinational enterprises benefiting from sweetheart tax deals with the Luxembourg authorities to avoid taxes in Europe.
Financial institutions are busy filing their first reports to tax authorities to comply with the common reporting standard (CRS), but loopholes in the global measure mean some taxpayers can remain undetected. Amelia Schwanke highlights the gaps appearing and the jurisdictions enabling them.
While tax authorities get better at detecting tax fraud, the fraudsters also find new ways to remain under the radar The sharing economy has offered numerous opportunities to individuals and businesses to minimise their tax liabilities, but tax authorities are now using sophisticated software to target those avoiding tax via platforms such as Airbnb, eBay, Amazon and Uber.
Rio Tinto has called on Australia and the US to cut their corporate tax rates to become more attractive investment locations, and it seems that Australian Prime Minister Malcolm Turnbull is listening. Will the US follow?